Interpublic (IPG) Sued by Exec Over Facebook (FB) Gains
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Interpublic Group of Companies (NYSE: IPG) is being sued over making substantial gains from an investment in Facebook (Nasdaq: FB), but not sharing the wealth appropriately.
Former senior account executive Ray Volpe says Interpublic's investment in Facebook of $2.5 million grew to $380.6 million over the next few years and into its IPO. Volpe said he convinced Interpublic in 2006 to make a $2.5 million investment in Facebook in June 2006, giving the company a 0.48 percent stake in the social media giant.
In August 2011, Interpublic sold half its stake on the secondary market for $133.5 million, then unloaded the other half during Facebook's IPO on May 18th for $249 million.
Volpe's lawyers have contended, "Thus, the value, or the realized gain, conferred on IPG by the insight, actions and persistence of Ray Volpe exceeds $380 million and is most likely in the range of $400-435 million."
Specifically, the suit seeks to recover Interpublic's "pretax gain on Facebook on the sales, alleging breach of contract, breach of fiduciary duty and unjust enrichment," according to Reuters.
For its part, Interpublic has said that the suit is without merit.
The case is Volpe v. Interpublic Group of Cos, New York State Supreme Court, New York County, No. 652308/2012.
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Interpublic Group of Companies (NYSE: IPG) is being sued over making substantial gains from an investment in Facebook (Nasdaq: FB), but not sharing the wealth appropriately.
Former senior account executive Ray Volpe says Interpublic's investment in Facebook of $2.5 million grew to $380.6 million over the next few years and into its IPO. Volpe said he convinced Interpublic in 2006 to make a $2.5 million investment in Facebook in June 2006, giving the company a 0.48 percent stake in the social media giant.
In August 2011, Interpublic sold half its stake on the secondary market for $133.5 million, then unloaded the other half during Facebook's IPO on May 18th for $249 million.
Volpe's lawyers have contended, "Thus, the value, or the realized gain, conferred on IPG by the insight, actions and persistence of Ray Volpe exceeds $380 million and is most likely in the range of $400-435 million."
Specifically, the suit seeks to recover Interpublic's "pretax gain on Facebook on the sales, alleging breach of contract, breach of fiduciary duty and unjust enrichment," according to Reuters.
For its part, Interpublic has said that the suit is without merit.
The case is Volpe v. Interpublic Group of Cos, New York State Supreme Court, New York County, No. 652308/2012.
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