SAN DIEGO-Qualcomm Inc. pulled out of an agreement that would have resolved a class-action lawsuit filed by former employees resulting from the sale of the assets of the company’s infrastructure division to L.M. Ericsson last year.
Qualcomm spokeswoman Christine Trimble said a significant number of people opted out of the agreement, which called for $8.9 million to be distributed to more than 1,000 former employees covered by the lawsuit.
Former Qualcomm employees filed the class-action lawsuit last year, claiming the sale to Ericsson would strip them of millions of dollars in stock options that were not vested by the sale date.
Qualcomm and Ericsson implemented a bonus plan last year designed to make several payments to workers over two years based on their unvested options. But some did not take the plan, opting instead to join the class-action lawsuit.
Some workers who opted for the bonus plan have claimed Qualcomm Chairman and Chief Executive Officer Irwin Jacobs promised them at least as much money as those who challenged the company in court, said the Associated Press.
Superior Court Judge John Meyer has given both parties until May 15 to mediate an agreement.
