November 13, 2014
In a case of first impression in New York, Schlam Stone & Dolan partner David Katz obtained a preliminary injunction in favor of a former employee of Checker's Drive-In Restaurants whose stock options were about to expire, tolling the exercise deadline of his options. The injunction was granted pending the adjudication of the claimant's breach of contract claim alleging that his employer had breached a shareholder agreement provision requiring the employer to provide him with certain financial information so he could make an informed decision about whether to exercise his options. New York County Commercial Division Supreme Court Justice Melvin Schweitzer ruled that the Schlam Stone & Dolan client had demonstrated that he was likely to succeed on the merits of his breach of contract claim and that he would suffer irreparable harm if the exercise deadline was not tolled. The case settled shortly after the preliminary injunction was granted.
Coverage of the case can be found here: