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Category: California Employment Law
Satisfied Customers: 1285
Experience:  I have 30 years of experience in the practice of law, including employment law and discrimination law.
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What is a company legally required to do when notifying an

Customer Question

What is a company legally required to do when notifying an ex-employee they are cancelling stock options?
My wife started working for a company in 2009. Within her employment she was granted stock options at a fair market value that would vest over time.
In 2010 she moved back to the UK remaining within the same company but technically under a different legal entity as was now employed by UK company.
In 2015 she was made redundant by the UK company. 3 months after this point her share options were cancelled without notification meaning that she did not get a chance to exercise them.
After contacting the US company they provided an unsigned/undated original copy of a ‘Terms of Cancellation’ letter. It specifically has an acceptance signature and date line on it but of course they do not have a signed version as it was never received.
Question is this: What are the US company legally obliged to do to notify an ex-employee that they are cancelling the shares? Does my wife have any grounds for pursuing this if the US company refuse to honour the options?
Submitted: 2 years ago.
Category: California Employment Law
Expert:  Law Educator, Esq. replied 2 years ago.
Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.
Was your wife vested in her shares? What did the terms on the shares state, as that is what the US Company is bound to honor?
What are they offering her in the notice?