A former Putnam
money manager attempting to sue the firm over money he lost in company stock recently had his case revived, reports the Boston Globe
wants to turn his case into a class action lawsuit open to other Putnam executives, past or present. An appeals court has reversed a earlier decision to dismiss the case, giving Eigerman another shot at proving he was coerced into holding onto stock and options in Putnam's private equity plan.
Putnam shares reached a peak value of $119.67 in autumn 2000, before taking a plunge when the market turned sour. Eigerman claims that a memo from then Putnam chief Larry Lasser
in January 2002 contained a veiled warning that executives choosing to sell company shares would put their careers in jeopardy. The memo stated that a manager would be monitoring stock sales "to allow us to develop a better understanding of why people reduce or divest ... given the now better clarified view that Putnam equity is awarded as a long-term incentive vehicle."
Eigerman himself sold 1,250 shares when he left Putnam in 2003, and holds Putnam responsible for $35,562 he says he lost by delaying the decision to divest.
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