Nvidia Denied Advisor Stock Option Claim
The technology firm rejected a claim for 9,375 stock options, citing the statute of limitations for California contracts.
Updated on Oct. 4, 2026 in Public Companies
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Nvidia formally denied a stock option claim from early advisor Eric Gullichsen in 2024. The dispute centers on 9,375 options granted in 1993 that allegedly amount to 4.5 million current shares.
Why it matters
Nvidia outside counsel Cooley maintained the claim is time-barred under California law. The company asserted the dispute arose 30 years after the original agreement, precluding any legal recovery.
The disputed 9,375 stock options represent 4.5 million shares following Nvidia's 480-for-1 historical stock split. At Friday's closing price of $233.95 per share, these options carry an estimated value of $1.05 billion.
The players
Nvidia
Nvidia is a prominent technology company specializing in the development of graphics processing units and artificial intelligence hardware.
Eric Gullichsen
Eric Gullichsen is an early advisor who worked with Nvidia during its founding period.
Jensen Huang
Jensen Huang is the chief executive officer and co-founder of Nvidia who issued the initial stock option offers.
Cooley
Cooley is a major law firm acting as outside counsel for Nvidia in this matter.
The details
Eric Gullichsen reread his original option agreement in 2024, leading to the dispute over whether additional options had vested. While Nvidia's finance chief claimed 15,625 options had vested in April 1996, the company now relies on the four-year statute of limitations for written contracts to dismiss the claim.
Timeline
1993: Nvidia granted 25,000 stock options to Eric Gullichsen.
April 1996: Nvidia finance chief claimed 15,625 options had vested.
2024: Eric Gullichsen reread the option agreement and initiated the claim.
October 2026: Article publication date.
Market Landscape
This dispute highlights the strict enforcement of California's four-year statute of limitations for written contracts in corporate governance. It serves as a reminder of how legacy agreements face rigid legal thresholds regardless of subsequent company growth.
This dispute serves as a cautionary tale for shareholders regarding the importance of timely oversight of equity agreements. Investors should remain aware that legal claims for historical compensation are strictly limited by regional statutes of limitations.
The takeaway
Employees and early advisors should regularly review their equity compensation agreements while the statute of limitations remains open. Failing to contest vesting discrepancies promptly can result in the total forfeiture of claims regardless of the company's valuation growth.
Further reading
For more on corporate legal developments, visit the Public Companies section.
Source note: This article includes information reported by BeInCrypto.
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