Employer refuses to let me sell stock options after termination

[vanillasf]

What is the name of your state? CA

Hi, I used to work in France for 6 years for a British Company: I got some options during this period.
Last year, I got transferred to the USA and was able to keep my stock option plan:

In Jan this year, I got fired (employment at will) without notice. At the time, the trading window of my company was closed on the london stock exchange and I couldn't sell my stocks. When the trading window reopenned, my employer told me that I could not sell my options because in the terms and agreements, it is stated that my options are lost at termination of my employment.

At the time they granted me these options, I had 3 months notice (according to the French law) but in the US, when they fired me, the trading window was closed and had it been open, the market was closed. This would have prevented me from selling the options that day anyway.

Is is legal not to give the employee a chance to sell the stocks as soon as the termination happens?

The COO of the company also told me that since I said I wanted to sue the company for wrongful termination and discrimination, he was not willing to ask a favor to the board of directors but if I refused to sue the company, he would be willing to see what he could do to help me. I refused his blackmail but we are talking about a 6 figure number.

Do you have any ideas what could be done and if it is legal to treat me like this?

Thanks very much

Vanillasf

 

[xylene]

Do you have any ideas what could be done and if it is legal to treat me like this?

You are talking about a 6 figure amount. You need to talk to a lawyer with that much on the line.

 

[tranquility]

If the options haven't vested, they haven't vested. What does your employment agreement say in regards to the options? If they fired you with the sole intention to keep the options from vesting, that could be a violation.

 

[vanillasf]

Hi,

I am only talking about the options that have vested. My employment contract doesn't mention anything about my optionsm only the deed of grant that I signed each time I got a grant.

I know the contract says that the options expire upon termination but when I signed these documents I was working in France and I had a 3 months notice so it allowed enough time to sell these options but when I got transferred to the US, I signed a transfer letter which stated that my job was at will. a few months later, they fired me without notice and reason. Of course the timing of this termination was in their advantage. This is what I would like to question. Since I did not choose the date of my termination, and it occured when the trading window on the London Stock Exchange was closed, I did not even have a chance to sell my vested shares, I am wondering how legal this is. In the light of the blackmail my former COO tried on me I think they could have let me sell the options but did not want that to happen.

Thanks for your thoughts. If any of you know attorneys specialized in stock options matters in the bay area, I would be interested.

Vanilla

 

[ecmst12]

This forum does not make referrals. You can contact your local bar association or use the Post Your Case buttons.

 

[Zigner]

I know the contract says that the options expire upon termination but when I signed these documents I was working in France and I had a 3 months notice so it allowed enough time to sell these options but when I got transferred to the US, I signed a transfer letter which stated that my job was at will.

You're sunk

 

[vanillasf]

Hi,

I have read my termination letter today and here is what I is written: this is written by someone from Human Resources and confirmed the day before on the phone by the COO America.

This is to confirm that on January 7, 2008, your employment with XXXX terminates. This letter summarizes the benefits to which you are entitled, and/or XXXX is making available to you on termination.

You are entitled to exercise the shares of your Non Qualified Stock Options, which have vested through January 7, 2008. Enclosed are the Stock Options memo and Option Exercise Notice, which explains your alternatives for exercising your vested options.

bla bla bla.

Even though I have a an Option Grant contract that says that my options expire on termination of my job, it seems that I have a letter ( equivalent to a contract???) that grants me the right to sell my shares that have vested anyway.

The COO UK told me that the options had expired but he is not aware of what this letter says, can I write to him and say that The HR granted me the right to sell my options after my termination? He is the person who tried to avoid the lawsuit in exchange of granting me the right to sell my options.

Thanks in advance.

Vanilla

 

[ecmst12]

Sure you can. No idea what he'll say.