March 11--A group of more than 65 employees has sued Integrys Energy Group for refusing to vest restricted stock grants.
The employees of the Chicago company's Energy Systems division claim that under their compensation plan, such grants are supposed to become fully vested in the event the company is merged or sold.
The plaintiffs cite the division's 2014 spinoff to Exelon and the parent company's subsequent $9.1 billion sale to Wisconsin Energy Corp., which is expected to close this year. In the lawsuit, the employees cited a 2010 compensation plan established by Integrys that states that "any existing employee stock holdings will become fully vested ... if a change in control has occurred."
The employees said that after the merger with Wisconsin Energy Corp. was announced they were told by company officials that their restricted stock grants, which collectively are worth about $7 million, would not vest.
"Integrys ... is refusing to honor its promise to these employees," Mark DeBofsky, an attorney for the plaintiffs, said in a statement. "Integrys has treated these stocks held by employees of the spun-off division ... as forfeited and has removed the awarded but unvested stocks from their accounts." .
An Integrys spokeswoman said the company doesn't comment on pending litigation.
crshropshire@tribpub.com
