Guy who flew to space sues company for canceling stock options when he returned - 6 May 2009

Richard Garriott Says He Was 'Forced Out' Of NCsoft, Sues For $27m

by Kris Graft

May 6, 2009

 Ultima Online and Tabula Rasa creator Richard Garriott is
suing his former employer NCsoft for $27 million, alleging that the
online game publisher engaged in "multi-million dollar fraud" by
mis-characterizing his departure from the company.



The suit, filed by Garriott's attorneys yesterday in a U.S. District
Court in Texas, says that South Korea-based NCsoft breached its stock
option agreement with the game designer, which was established when
NCsoft acquired Garriott's Destination Games in 2001.



The complaint, obtained by Gamasutra, also claims that Garriott did not
depart NCsoft voluntarily as widely reported in November 2008. The suit
alleged that around that time, Chris Chung, president of NCsoft's North
American operations, told Garriott that NCsoft had decided to "part
company" with the famed game creator.



The suit said that Garriott "objected to his dismissal," but claimed
"Chung insisted the decision was final -- Mr. Garriott had to go." The
filing said at that point, Garriott was prepared to leave NCsoft.



However, Garriott's complaint claims that Chung had meanwhile
internally "re-characterized" his termination as "voluntary." The
problem is that the alleged re-characterization of the dismissal would
have a significant impact on Garriott's stock options.



The suit said if Garriott was terminated by NCsoft, the options would
remain in effect until June 2011. However, upon a voluntary
resignation, NCsoft would terminate those stock options unless
exercised within 90 days of his departure.



Garriott's complaint said NCsoft gave him the "Hobson's choice"

For more information on Spaceman wants his $27 Million in Stock Options.

Posted by Dan Walter

Performensation: Equity Compensation for High Performance Companies.