Matterport Appeals Stock-Lock Ruling that Awarded ex-CEO $79M

In a recent legal battle, Matterport, a leading provider of 3D capture technology, is appealing a ruling that awarded its former CEO $79 million in a stock-lock dispute. The ruling, which was in favor of former CEO Bill Brown, has prompted Matterport to challenge the decision in court.

Background

Bill Brown served as the CEO of Matterport from 2019 to 2021. During his tenure, Brown oversaw the company’s growth and expansion into new markets. As part of his compensation package, Brown was granted stock options in Matterport, which were subject to a lock-up agreement.

The lock-up agreement stipulated that Brown would not be able to sell his shares of Matterport stock for a certain period of time. However, Brown claimed that the lock-up agreement was not valid and that he was entitled to sell his shares at any time.

The Ruling

In a surprising decision, the court ruled in favor of Brown and awarded him $79 million in damages for the violation of his rights under the lock-up agreement. The ruling has sent shockwaves through the tech industry, as it sets a precedent for how stock-lock disputes are resolved.

Matterport’s Appeal

Following the ruling, Matterport has filed an appeal in hopes of overturning the decision. The company argues that the lock-up agreement was valid and that Brown was not entitled to sell his shares before the agreed-upon date. Matterport is seeking to have the ruling reversed and to have the damages awarded to Brown overturned.

Conclusion

The legal battle between Matterport and its former CEO highlights the complex nature of stock-lock agreements and the importance of clear and enforceable contracts. The outcome of the appeal will have far-reaching implications for both parties involved and could set a precedent for future cases of this nature.

FAQs

Q: What is a stock-lock agreement?

A: A stock-lock agreement is a contractual agreement that restricts an individual’s ability to sell or transfer their shares of stock for a certain period of time.

Q: Why is the Matterport case significant?

A: The Matterport case is significant because it has the potential to set a precedent for how stock-lock disputes are resolved in the future and could impact how companies structure their compensation packages for executives.

Q: What are the potential implications of the appeal?

A: The appeal could result in a reversal of the ruling in favor of the former CEO and could have financial implications for both Matterport and Bill Brown.