by Christopher Freeburn | March 5, 2013 11:08 am
Yahoo (NASDAQ:YHOO) is being sued for breach of contract by the founder of Interclick, which the Internet search pioneer purchased in 2011.
Michael Katz, founder of the online marketing firm, alleges that he was promised a retention bonus to be paid in annual installments of $1.35 million over three years and a final bonus of $450,000 in 2016. However, he says Yahoo attempted to “cheat” him out of the bonus by firing him just weeks before he would have received the first payment, Reuters noted.
Yahoo purchased Interclick for $270 million. Katz continued to helm the company for a year after the buyout.
He claims he was informed of his termination during a Sunday night conversation with Yahoo’s human resources head at a bar on the second night of Hannukah. The firing came seven months after Marissa Mayer became Yahoo’s new CEO.
Last month, Mayer drew criticism from some observers for ending Yahoo’s policy of allowing employees to work from home.
Shares of Yahoo rose almost 1% in Tuesday morning trading.
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