What are the expected costs of suing an employer for not honoring an RSU contract?

Question from Richard, What are the expected costs of suing an employer for not honoring an RSU contract?

Answer from AI:

Suing an employer for not honoring a Restricted Stock Unit (RSU) contract can involve various costs. While it’s difficult to provide an exact breakdown of expenses, as they can vary depending on the specific circumstances and location, here’s a general overview of the potential costs you might encounter:

Attorney’s Fees

The most significant expense in a lawsuit is typically the attorney’s fees. These fees can vary depending on the complexity of the case, the attorney’s experience, and the region. Some attorneys may charge an hourly rate, while others may work on a contingency basis, taking a percentage of any recovery you receive. In a case involving a $7 million claim, attorney’s fees could be substantial.

Filing Fees

When initiating a lawsuit, you’ll need to pay a filing fee to the court. Filing fees vary by jurisdiction and the type of case. In the United States, federal court filing fees are generally around $400, while state court fees can range from $100 to $500 or more.

Discovery Costs

During the discovery phase of a lawsuit, both parties exchange information and evidence relevant to the case. Discovery costs can include:

• Depositions: Fees for court reporters, transcripts, and videographers
• Document production: Copying, scanning, and organizing documents
• Expert witnesses: Hiring experts to provide testimony or analysis

Mediation or Settlement Costs

Before going to trial, parties often attempt to resolve their dispute through mediation or settlement negotiations. Mediation fees can range from a few hundred to several thousand dollars, depending on the mediator’s experience and the complexity of the case.

Trial Expenses

If your case goes to trial, additional costs may include:

• Courtroom fees: Fees for reserving a courtroom or using court equipment
• Witness fees: Travel expenses and fees for witnesses to testify at trial
• Exhibit preparation: Costs for creating visual aids and exhibits for trial

Appeals

If either party appeals the trial court’s decision, there will be additional costs for attorney’s fees, court filing fees, and other expenses related to the appeal.

Note: It’s essential to consult with a legal professional to get personalized advice and a more accurate estimate of the costs involved in your specific case. Additionally, some states have fee-shifting provisions that may allow the prevailing party to recover their attorney’s fees and costs from the losing party.

For more information on RSU disputes and related legal issues, consider visiting the U.S. Securities and Exchange Commission website or consulting with an attorney experienced in employment and securities law.