Stock Option Disputes

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Stock Options

Employers will frequently offer employees stock options or stock option plans (ESOPs) as an incentive to work for the employer. Normally, the way stock options work is that after an employee works at the company for a certain amount of time, the employer will sell shares of stock of the company to that employee for less than the market value of the stock. The employee then can sell the shares of stock on the market for more than the employee purchased them.

My Employer Promised that my Stock Options Would Increase in Value but they Have Not. What can I Do?

Sometimes stock options can be a curse instead of an incentive. In many instances, employees have purchased stock options only to find that the actual value the company's stock has fallen below the price they purchased them for, and even become worthless if the company goes under.

An employee who has lost significant amounts of money because stock options became worthless may have a legal recourse against the employer-especially if the employer knowingly gave employees false hopes of becoming rich. Ask yourself these questions when determining if your employer may have put you into an unjust situation:

What Should I Do if I Was Misled about My Company's Stock Options?

If you think that you lost money because your company misled you about its stock options plan, you may wish to consult an experienced employment law attorney or employee stock option attorney. Wrongful cancellation of employee stock options, breach of an employee stock option agreement or wrongful termination of employee stock options are often sufficient grounds for legal action. An employment law lawyer or employee stock option lawyer can advise you of your rights and help you determine if you are entitled to compensation for your lost investment through employee stock option litigation.

Vea esta página en español: Disputas de Opciones de Comprar Acciones o visita para más información legal.

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Last Modified: 11-18-2011 03:42 PM PST

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