Sawers McFarlane

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Stock Option Litigation - Sawers McFarlane

Don’t Miss Out On Your Options

Economic uncertainty has dramatically changed the way in which companies approach employee stock option plans, including how they utilize the plans to compensate and retain their employees. Disputes tend to arise any time there are questions as to whether or not a terminated employee is entitled to accelerated vesting in these plans, especially if there’s a possibility that the termination was made solely for the purpose of avoiding such vesting or if the company’s failure to grant these options or properly vest the shares were in direct violation of the original underlying agreements. Many of these disputes cross a number of employment law areas and require the services of an expert legal professional that is well versed in employment law. The law firm of Sawers McFarlane routinely represents both employers and employees in cases involving stock option disputes.

What Are Employee Stock Options?

There are two main types of Employee Stock Options (ESOs): non-qualified stock options are plans in which employees owe no taxes when the options are granted but are required to pay income tax on the difference between the strike price and the stock’s market value once the option is exercised. Incentive stock options are plans in which taxes are deferred and paid only when the stock is sold. Stock sold at least a year after the date the incentive stock option is granted is taxed at a long-term capital gains rate; if sold before, the gains are taxed much like ordinary income.

Some of the most common claims involving stock option litigation involve lost future options, in which the employee claims that their termination or failure to be promoted has caused them to miss out on options or grants. The forced early exercise of options is when an employee claims that the company terminated them and forced them to exercise the options prematurely. Fraudulent inducement is when employees claim that they were induced to go to work for a specific employer through the offer of options that were either not granted or failed to vest under the agreed schedule.

The Right Firm For Your Claim

The law firm of Sawers McFarlane is committed to bringing its wealth of legal experience to the table to help each client with their unique stock option litigation circumstances. With each new case, Sawers McFarlane takes the time necessary to uncover the details, identify the issues at work, provide preliminary legal advice, and allow you the opportunity to choose whether or not you will move forward with legal action. There are times that a lawyer’s services are not needed, but when they are, the hard-working lawyers of Sawers McFarlane are there to make sure that your rights are protected and your best interests are served. The firm has earned a distinguished reputation in the legal community, earning the trust of thousands of clients across Calgary as professional, tenacious, and efficient representatives. Sawers McFarlane is located at #920 250 5th St. SW, Calgary, Alberta T2P 0R4. They can be reached by calling (866) 790-3221.