Dozens of former and current BuzzFeed employees are demanding financial compensation over accusations that a mismanaged stock market debut last year hurt their ability to sell shares at a higher price.
Two claims were sent to the American Arbitration Association on Tuesday on behalf of 77 employees who say BuzzFeed failed to instruct them clearly on how to trade a collection of 900,000 shares when the company went public in December 2021, claiming they suffered because they were not able to sell until the price dropped nearly 60% to less than $5.
The employees are asking for compensatory damages estimated at more than $8.7 million, according to the New York Times. The report notes that they filed the claims because a clause in their contracts requires certain disputes in arbitration instead of in court.
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“BuzzFeed prioritized communication with former and current employees last year to provide them with the information they needed to manage their equity,” a BuzzFeed spokesperson said in a statement. “It’s regrettable that the stock price declined, but there is no merit to the claims and we intend to rebut them vigorously.”
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BuzzFeed is set to report earnings next Tuesday for the first time since going public, according to the report.
