Q: Can I sue a company for lost wages who recruited me and then went bankrupt 3 months later due to hidden money issues?
Company recruited me away from a 14 year career and offered me 150 k salary and 20k equity stock. Three months later the board fired the ceo and at the same time the new cfo did an analysis on the company’s finances and found 80 million dollars of debt that was not disclosed to any new employee. The company closed and let everyone go with no severance. Can I sue them for anything and recoup my salary and now worthless stock? They are being sued by multiple creditors currently and are liquidating everything
A: You could certainly try, but given they are bankrupt it may be a pointless effort since they have no money.
A: It isn't clear if this company is bankrupt in the sense that they closed their doors or in the sense that they filed for an actual bankruptcy. In the latter case you would want to file a proof of claim and see if you get paid something because claims for wages have a somewhat higher priority.
Yes you can sue the company. Anyone can sue anyone. But it might be pointless as you will spend your own money to pay your attorney and you may never recover anything if the company is truly underwater. But you can investigate if it would be worth while, because while the company has a lot of debts, the question still remains whether their net worth is great then their debt such that in a liquidation there would be some money to pay you. It can be the case that a company can have assets like land, buildings, equipment and inventory which when liquidated will generate case to pay debts, but as an operating concern the company is bankrupt because the company doesn't have the cash flow from daily operations to service the debt. I wouldn't get my hopes up, but you could look into this.
I would recommend contacting BOLI (Oregon's Bureau of Labor and Industries) as BOLI can and will pursue case of failure to pay wages, especially the failure to pay minimum wages, at no cost to you. Whether BOLI will seek your full compensation package you were promised, I don't know. But you can certainly call them and find out.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.