SAN DIEGO (AP)-Disgruntled employees are suing Qualcomm Inc., demanding potentially millions of dollars in stock options.
The class-action lawsuit filed last week demands that unvested stock options for workers in Qualcomm’s infrastructure division be immediately vested. The lawsuit also seeks unspecified damages. The total figure could top $50 million, said Richard Williams, an attorney for one of the law firms representing the employees.
Qualcomm stock hit an all-time high last month after the company reported strong earnings and the settlement of a long-running patent dispute with L.M. Ericsson. Qualcomm announced the settlement in March and said it agreed to sell its money-losing infrastructure division to Ericsson.
The lawsuit involves employees who will have to give up unvested portions of their stock options because of the sale. The lawsuit claims Qualcomm used lucrative stock options to lure recruits even as it negotiated to sell the division. Ericsson said last week it will retain 1,280 division workers under the deal, which is expected to close May 24.
Qualcomm and Ericsson have a bonus plan, already signed by several hundred employees, that will make several payments to workers during the next two years based on their unvested options. Qualcomm said the value is about 20 percent to 50 percent of what the stock is worth at current prices.
