Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: Boplicity who wrote (29413)	5/7/1999 11:05:00 AM
From: T L Comiskey	Respond to of 152472

Greg...All..... sorry if this has been posted....ay 7 10:48 AM ET Qualcomm Sued Over Stock Options SAN DIEGO (AP) - Wireless communications company Qualcomm Inc. (Nasdaq:QCOM - news) was sued by disgruntled employees demanding potentially millions of dollars in stock options. The class-action suit was filed yesterday. It demands that unvested stock options for workers in Qualcomm's infrastructure division be immediately vested. It 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 rival Ericsson of Sweden. Qualcomm announced the settlement in March and said it had agreed to sell its money-losing infrastructure division to Ericsson. The suit involves division employees who will have to give up unvested portions of their stock options because of the sale. Thomas M. Sprague, a Qualcomm vice president and lead plaintiff in the suit, said he could lose more than $1 million worth of unvested options. The suit contends that Qualcomm used lucrative stock options to lure recruits even as it negotiated to sell the division. Ericsson said Thursday that it will retain 1,280 division workers under the deal, which is expected to close May 24. Dan Sullivan, Qualcomm's senior vice president of human resources, accused some suing employees of wanting to ''double dip.'' The company and Ericsson have a bonus plan, already signed by several hundred workers, that will make several payments to workers over 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. Sullivan noted that the company also is keeping transferred workers on its payroll through June so that they can continue taking part in an employee stock-buying program that offers shares for about $43 each - about five times below Thursday's market price. Qualcom fell $8.561/4 a share to $216.061/4 Thursday in Nasdaq Stock Market trading. Tony Chartrand, Ericsson's vice president of human resources, said that company also will provide a stock-option plan for former Qualcomm employees effective Jan. 1, but details are still being worked out.