Ex-Yahoo! executive claims the company cheated him

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Yahoo has been getting into controversies lately. The latest one was last month when the new CEO of the company, Marissa Mayer, decided that not even one of the company’s employees are allowed to work from home. After this, we have a lawsuit against the company today for cheating an employee. We are talking about Michael Katz, from the company called Interclick which was acquired by Yahoo in December 2011.

Interclick is an online advertising company which would help Yahoo in delivering targeted ads online to its users. Anyway, the lawsuit that Michael Katz has filed against Yahoo at the New York State Court says that he was running the Interclick business even after the acquisition was made. The complaint says that along with breach of contract, the company did a lot more things and this is seven months into the tenure of Marissa Mayer, the former Google executive. But Marissa Mayer, the new CEO of the company, is nowhere mentioned in the lawsuit. The company has refused to comment for now.

Michael Katz claims to have worked under various CEOs at Yahoo. The list includes Tim Morse, who was the company’s interim CEO and former finance officer, and interim CEO Ross Levinsohn. According to the lawsuit, Ross Levinsohn has been said to have called Michael Katz as a “great visionary.”

According to the lawsuit, the company had agreed to pay Michael Katz a retention bonus in the form of three yearly instalments of $1.35 million. And this was supposed to begin in January of 2013 and end with a $450,000 in January 2016. But seven months before the first payment was due, the company has fired Michael Katz in a bar on a Sunday evening. Reuters writes:

According to the lawsuit, Yahoo’s head of human resources summoned Katz to a bar for what he believed was a pressing work matter on a Sunday evening in December “while he was at home observing the second night of Hannukah.”

At the bar, Katz was informed that he was being terminated “effective almost immediately,” weeks before he was to be paid the first of the retention bonuses.

The “rushed termination clearly was structured and timed as an attempt to deprive him of the compensation he was promised during the merger negotiations,” according to the complaint. In case you are interested in this, you can refer to “The case in Supreme Court of the State of New York, County of New York is Michael Katz vs. Yahoo, case number 0650740-2013.”

Source: Reuters