Former executive sued advertising agency over Facebook stock

When it comes to employee relations, managers, CEOs and owners have a duty to accommodate their workers up to a point. With regard to gaining extra compensation or bonuses for ideas or products created while on the company's time, businesses are not required to reimburse employees due to the intellectual property law. Companies in Arizona that have been implicated in lawsuits over patent infringement or labor issues may need to speak to business attorneys at Phoenix law offices.

Interpublic Group of Companies Incorporated, a leading advertising agency based in the United States, has been accused of keeping several hundred million dollars from a former executive who contributed to the company's profits by investing in Facebook Inc. stock, according to Bloomberg.

The executive, Ray Volpe, took part in researching and acquiring the stock for the company. Volpe filed the lawsuit on July 2 in the New York state's Supreme Court. The executive alleges that he developed the strategic plan to invest in Facebook at the beginning of 2006. 

While Interpublic invested $2.5 million in the Facebook stock, the shareholders reaped more than $380 million after they sold the shares in August of 2011 and May of 2012. A spokesperson at Interpublic spoke on the suit, claiming that it is without merit.

"The Facebook transaction was entered into at the corporate level, and the claims made by Mr. Volpe are based on self-serving, one-way e-mails sent by Mr. Volpe to IPG management after the fact, in an attempt to garner personal gain from a very successful commercial decision taken by IPG," Tom Cunningham, the Interpublic spokesperson, said. "The claim that IPG would act as his bank on this transaction is absurd, and wholly inconsistent with how we do business."

Companies in Arizona that are in the midst of a labor lawsuit, similar to Interpublic, may need to have a Phoenix business lawyer on their side.

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