Former Getaround CEO sues platform over wrongful termination
Sam Zaid filed a $1.9 million lawsuit in Puerto Rico, alleging breach of contract and fraud.
Sam Zaid, co-founder and former CEO of Getaround, has filed a lawsuit in the U.S. District Court for the District of Puerto Rico, alleging wrongful termination, breach of contract and unpaid severance.
The complaint names Getaround Inc., Getaround Operations LLC and several board members as defendants.
According to the lawsuit, assigned to Judge Camille L. Vélez-Rivé, Zaid was terminated on Feb. 26, 2024, after nearly 15 years at the company. Getaround, a San Francisco-based car-sharing platform, allowed him to relocate to Puerto Rico in 2020, where he continued working remotely. He filed his complaint on Feb. 25, just under the one-year deadline.
“Plaintiff has not been paid any severance or ‘mesada payment’ under local Act 80,” the lawsuit states, referring to Puerto Rico’s employment protection law. The complaint alleges that other executives terminated under similar circumstances received full severance packages, while Zaid was denied his contractual benefits.
Zaid’s lawsuit follows a Jan. 19, 2024, transaction in which Mudrick Capital Management LP increased its control over Getaround, acquiring more than 50% of voting shares. The complaint claims that following this deal:
- Jason Mudrick became chairperson of the board.
- Zaid was terminated as CEO and replaced by Eduardo Iniguez, whose compensation package was significantly higher.
- Several other top executives, including the chief marketing officer, chief operating officer, vice president of marketing, and vice president of people, were also dismissed.
Breach of contract, fraud claims
The lawsuit asserts that Zaid had a change in control (CIC) agreement with Getaround, entitling him to severance benefits if he was terminated within a specific period. Despite this, the complaint alleges that the board refused to honor the agreement, engaged in bad-faith negotiations and delayed discussions beyond the required time frame to avoid payment.
“The Director Defendants acting in their personal capacities, led Plaintiff to believe that they would honor the CIC Agreement following the termination of Plaintiff’s employment and knowingly, intentionally and in bad faith exchanged multiple drafts of the separation and release agreement, which grossly departed from the previously contracted terms of the CIC Agreement,” Zaid claims in the filing.
The complaint also accuses Mudrick of attempting to pressure Zaid into resigning from Getaround’s board as a condition for receiving severance.
Zaid is claiming $739,581.60 in severance pay under Puerto Rico Act 80, $1 million in damages for emotional distress and lost earnings, and attorney’s fees and interest, bringing the total claim to more than $1.9 million.
The case requests a jury trial and seeks to hold Getaround’s leadership personally liable for alleged negligence, fraud and breach of contract.
