Does the employee have actionable fraud claim

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Reference no: EM132211262

An employee was approached by a “headhunter” who informed her that a direct competitor of her current employer was “very interested” in hiring her. The headhunter cited the details of an attractive compensation package that the rival firm intended to offer. Her supervisor heard of the impending job offer and the employee confirmed the information. The CEO initially told the supervisor to terminate the employee, but then re-considered after learning that the employee had never signed a non-competition agreement that would limit her ability to work for a competing firm. Saying to the supervisor that “I guess we have to pay the ransom,” the CEO proceeded to re-negotiate her compensation. In the course of these negotiations, the employee was told that, based on projected revenues for the upcoming year, the employee should not have any problem achieving her full bonus for the year. At the time that these negotiations were occurring, the company was operating with a negative cash flow and was experiencing numerous financial problems. The employee accepted the new compensation package and signed the requisite non-competition agreement. Several weeks later, the company announced a restructuring plan that eliminated the employee’s position. Does the employee have an actionable fraud claim? Why or Why not? Explain your answer.

Reference no: EM132211262

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