Pavel Zheltov vs PageBites, Inc. et al

Parties Involved

  • Plaintiff: Pavel Zheltov
    • Counsel for Plaintiff: Jeffrey McCormick Curtiss
  • Defendants: Alexander Hartigan | PageBites, Inc.
    • Counsel for Defendants: Emily Reitmeier | Loren Kieve

Verdict Information

  • Verdict date:  April 10, 2024
  • Total damages awarded to Plaintiff: $1,020,105.84

About the Case

Cause

Pavel Zheltov, the plaintiff, had filed a breach of contract lawsuit against PageBites, Inc. and Alexander Hartigan, the defendants, seeking recovery of promised equity compensation. Initially, the defendant promised the plaintiff 20,364 shares of Joy Inc., vesting evenly over four years with a one-year cliff. However, on the one-year anniversary of his employment, the plaintiff expected to vest in 5,091 shares but received only 255, constituting 1/20th of the expected amount. Despite the plaintiff’s objections, the defendant continued compensating him at 1/20th of the entitled rate.

Furthermore, pursuant to the plaintiff’s offer letter dated December 1, 2019, the defendant promised 73,394 RSUs, vesting quarterly over four years with a one-year cliff. However, by January 1, 2020, the plaintiff expected to vest 5,091 shares but received only 255. Subsequently, the plaintiff learned that YY shares listed on Nasdaq were ADS units, where one ADS unit equaled 20 YY Class A common shares. Since January 1, 2021, the plaintiff attempted to address the issue with the defendant’s Human Resources department and decision-makers but received no resolution. Consequently, he brought this suit for unpaid wages, breach of contract, and fraudulent misrepresentation.

Injury

PageBites breached the offer letter and the RSU award agreement by failing to provide the promised equity compensation. Consequently, the plaintiff suffered damages, including lost equity, with the exact amount to be determined at trial. This ongoing breach significantly impacted the plaintiff’s expected financial gains from his employment. Therefore, he had demanded compensation for the equity he should have received, reflecting the true value of the lost shares.

Damages

The plaintiff had prayed for several damages in the instant breach of contract lawsuit. He had sought compensatory damages in an amount to be proven at trial. Moreover, he had requested specific performance of the contract. Additionally, he had asked for reasonable attorney’s fees and costs of suits. Furthermore, he had sought pre-judgment interest. Finally, he had requested any other relief the court deemed just, equitable, and proper.

Jury Verdict

On April 10, 2024, the California jury awarded the plaintiff $1,020,105.84 in damages in the present breach of contract lawsuit. The jury found the defendant guilty of breach of contract, false representation, and fraudulent concealment, resulting in harm to the plaintiff. The jury held that the defendant had engaged in conduct constituting malice, oppression or fraud and owed the plaintiff wages. Consequently, the plaintiff was compensated for the lost wages which was found to be equal to $1,020,105.84.

Court Documents:

Available upon request