NEW YORK — A former E. F. Hutton Group executive filed a $30-million class-action lawsuit claiming he and other Hutton employees were gypped out of promised shares in the brokerage house when it was acquired by Shearson Lehman Bros. Holdings Inc.
The suit, filed in U.S. District Court in Manhattan by Christopher J. Harris, accused Hutton, Shearson and a Shearson subsidiary, SLBP Acquisition Corp., of breach of contract and fiduciary duty.
A spokesman for Hutton, Robert Sharkey, said the company's lawyers had not yet seen the court papers, "so it would be inappropriate for us to comment."
There was no answer at a Shearson spokesman's office when called for comment Monday evening.
Harris, of Morristown, N.J., a former Hutton administrator, claimed in court papers that he and other "key employees" were promised equity shares, as a so-called golden handcuff, to induce them "to stay with the company through a period of corporate uncertainity."