Many employers offer employees stock options as part of the employment contract. However, according to a recent Massachusetts Supreme Court Decision, employment contracts do not fall under the umbrella of “trade” or “commerce”, and are not protected under Chapter 93A of the Massachusetts Consumer Protection Act. So, an employer’s misrepresentations about stock options are not actionable under Chapter 93A because an employee and an employer are not engaged in trade or commerce with each other. Neither the Massachusetts Court Appeals nor the Massachusetts Supreme Judicial Court has ruled on the applicability of Chapter 93A to misrepresentations made prior to employment
