Are the details of company buy-outs public information?
February 28, 2006
Date: Thu, 02 Feb 2006
I left a privately-held corporation where I had almost 5,000 vested options that expired 3 months after the end of my employment. Almost exactly 3 months after I left, the company announced that it was being purchased by a larger company of about $1 per share more than my option price. Employees with vested options were bought out at a price about $2 higher than my option price.
I have asked three times what the date of the sale was, and received no response. If the sale was before my expiration date, I’m guessing I would be entitled to the price of my options at that time.
Is the date of sale supposed to be public information? Where can I find it? If the sale was before my expiration date, do I have a legal basis for a claim, and would it be worth the cost?
Thank you for any help you can provide,
Date: Wed, 08 Feb 2006
First, I don’t have enough information to answer your question about whether it would be worth the cost of filing a lawsuit, because I don’t know how much you might be entitled to.
Private companies aren’t subject to many public information requirements. You might try hiring a private investigator to find out the date of sale.
This is a legal matter that I’m not qualified to respond to, so I suggest that you consult with an attorney who understands stock options.