Former hedge fund employee sues firm for millions in lost pay
A former employee of the investment firm Archegos is suing the firm mand its founder Bill Hwang and five other former top executives. The investment firm had previously caused a brief market panic when it lost more than $10 billion in a matter of days last year. The lawsuit was filed against the firm on Tuesday in Federal District Court in Manhattan. Tech stock analyst Brendan Sullivan joined Archegos in 2014 and resigned shortly after it blew up.
Sullivan says he lost $50 million, as part of a $500 million deferred employee compensation plan that evaporated along with Archegos’s other assets when its highly leveraged options strategy failed. The lawsuit seeks to force Mr. Hwang to cover the losses. Meanwhile, Mr. Hwang was charged with fraud this year after suspicion of misleading lenders and market manipulation.
According to the lawsuit, fund employees were told that the deferred pay plan was guaranteed and that it was invested in highly liquid stocks. But the lawsuit states that both these claims were false. It says employees were forced to contribute at least 25% of their annual bonus to the plan and declare how much they would defer before they knew the details of the bonus.
Source: The New York Times
Sullivan says he lost $50 million, as part of a $500 million deferred employee compensation plan that evaporated along with Archegos’s other assets when its highly leveraged options strategy failed. The lawsuit seeks to force Mr. Hwang to cover the losses. Meanwhile, Mr. Hwang was charged with fraud this year after suspicion of misleading lenders and market manipulation.
According to the lawsuit, fund employees were told that the deferred pay plan was guaranteed and that it was invested in highly liquid stocks. But the lawsuit states that both these claims were false. It says employees were forced to contribute at least 25% of their annual bonus to the plan and declare how much they would defer before they knew the details of the bonus.
Source: The New York Times
Category
People Management
Organizational &
Networking
Fiduciary Duty
Employee Data Privacy
Workplace Culture
Technology
Raise
Workforce Planning
Succession Planning
Environmental Health Hazards
Downsizing
Employee Handbooks
Remote & Hybrid Work
Overtime Pay
Inclusion, Equity &
Disaster Preparation & Response
Hiring & Firing
Religious Accomodations
Benefits Reporting & Disclosure
Risk Management
Leave Management
Electronic Records Management
Firing
Data Security
Overtime Eligibility &
Unemployment Benefits
Mental Health Benefits
Opening & Closing
Substance Abuse
Work Visas
Disability Benefits
Intellectual Property
Dependent Benefits
Mental Wellness
Employee Resource Groups
Age
Gender Identity
Social Media
Mentoring & Coaching
HR Software
Change Management
Inclusion, Equity & Diversity
Compensation & Benefits
Performance Management
Pay Equity
Workplace Security
Religion & Spirituality
Background Checks
Discrimination
Tags
Article
With Remote Working Being the New Norm, How to Hire the Best remote Workers
Before the advent of the COVID-19 pandemic, about 7 million people in the US alone were working rem ...
Driver Jobs to Watch Out For
If you love being on the road, if you love driving with the wind rushing through your hair, if your ...
What Are the Costs to Consider While Planning A Recruitment Budget?
If your organization is on a hiring spree too, one of the key things to consider is the recruitment ...
This Thanksgiving - Give Thanks To All These People
This Thanksgiving is going to be different, no doubt! But it need not be different in a negative se ...
Comments