About 200 current and former Uber employees have filed a lawsuit against the company broke an agreement that would have given them access to stocks at lower rates, CNBC reports.
The lawsuit claims that Uber violated its restricted stock unit (RSU), which tech startups often use to attract talent, by pushing forward the date of its IPO. The date chosen by Uber locked in at stocks at $45 a share.
However, the lawsuit alleges that Uber executives likely knew the value of its stocks would decline following the IPO. Six months after its IPO, a period in which employees with RSUs are not allowed to sell their shares, stocks were valued at $27, although employees with RSUs were taxed on the $45 per share price.
The employees are seeking compensation and punitive damages.