Appellate Court Affirms Dismissal in Sycamore Networks Stock Options Case

A three-judge panel of the Massachusetts Appeals Court affirmed the dismissal of claims brought against Skadden client Sycamore Networks and its CEO by a former employee and self-described "whistleblower" in connection with stock option practices. The plaintiff alleged, among other things, breach of an oral stock options agreement and wrongful termination. In affirming the 2007 dismissal, the Appeals Court issued an opinion on December 22, 2009, stating that "there was no error in dismissing this claim." The Appeals Court affirmance provides the capstone to Sycamore's regulatory inquires and shareholder litigations related to one of the earliest stock option investigations, and follows the dismissals of derivative actions filed in state and federal courts in Massachusetts, New York and Delaware.