Job Offer Rescinded At New Firm after Quitting Old Job

My job offer at a hedge fund was rescinded after I was given a written offer letter along with a start date and salary. A couple of weeks after the written offer letter which I had sent back 2 days after receiving, I got a phone call from my recruiter saying that the company is going in a different direction and filling the position with a more junior person and restarting their search.

He claims that in his career he has never seen a job offer rescinded that is not based on a background check or drug test. Has this happened to anyone in their career and is there any legal recourse I can take? Can I get unemployment somehow? Now I am stuck being unemployed with no source of income thanks to this new firm who had given me the impression I'd be starting really soon.

I was very excited to work for this new firm as well and it has literally crushed me and given me the impression that there really is ZERO loyalty or ethics in this industry at all. Any comments, stories or advice would be greatly appreciated. Thanks.

 
TeddyTheBear:
Sorry to hear that. I guess this is something that would really only happen at a new firm. Established funds and banks are not likely to do this.
This is actually a very established firm that has been around for a while. Privately owned company.
 

Sorry to hear this. Unfortunately, you won't be able to collect unemployment as technically you were never employed. It's probably not worth pursuing legal action and would cost you a lot more in the long run. It kind of sucks that this happened but maybe you'll be better off down the line.

 

You thought financial firms had loyalty? Sucks, but it was a faulty premise.

http://www.ft.com/cms/s/0/67f0715e-0c4b-11de-b87d-0000779fd2ac.html

I remember hearing about the bigger banks rescinding offers from huge portions of their incoming classes, and laying off lots of people a couple of days before bonuses. Thats the nature of finance.

“...all truth passes through three stages. First, it is ridiculed. Second, it is violently opposed. Third, it is accepted as being self-evident.” - Schopenhauer
 

Did you quit another job to take this one? If so, you could possibly sue for damages, although I personally wouldn't take that path. I'd go around the recruiter in this case to the head of the fund and straight up ask him what's up.

 

If they are a good fund, then their legal team will crush you (even if you have a good complaint). But if you could close these guys, then you are capable of closing an offer elsewhere if you keep at it.

 
FinanceWhiz1989:
But if you could close these guys, then you are capable of closing an offer elsewhere if you keep at it.

Also, they might extend an even better offer in the future. Never burn bridges unless you're absolutely sure of what you're doing.

 
holla_back:
FinanceWhiz1989:
But if you could close these guys, then you are capable of closing an offer elsewhere if you keep at it.

Also, they might extend an even better offer in the future. Never burn bridges unless you're absolutely sure of what you're doing.

Yeah I would never burn bridges because that isn't my personality which is why I didn't post the name of the firm here. It was just really tough because this was a position and company that I really wanted because they sold me on it so well.

I told many people at my current company about my situation and they have offered to call over because they are competitors. My senior trader said he would reach out to their PM to get more color on this situation.

My recruiter on the other hand seems very hestitant on me calling over or emailing them directly. I do have all of the business cards of everyone who I interviewed with but not sure if I want to catch them off guard with a phone call. I mainly just want to talk to them to get more clarity than getting vague answers from my recruiter who now to me seems very untrustworthy.

 
peinvestor2012:
Fuck them. Lawyer up man. You put your career on the line for this offer. They cannot simply pull it after it became a signed agreement by both parties.

If this is how they operate, the fund clearly won't last long anyway.

They sent the offer letter unsigned from their end. This fund has been around for more than 20 years and is a pretty prestigious private firm.
 
rich426:
peinvestor2012:
Fuck them. Lawyer up man. You put your career on the line for this offer. They cannot simply pull it after it became a signed agreement by both parties.

If this is how they operate, the fund clearly won't last long anyway.

They sent the offer letter unsigned from their end. This fund has been around for more than 20 years and is a pretty prestigious private firm.

Even if it wasn't signed, if the intent and "offer" was clear, you probably have a case. As someone else said, their legal team is probably quite legit. Surprising that a 20 year old shop would do something like this, since it will clearly be a hit to the firm's reputation.

Shitty situation man, hopefully things will work out for you.

 

I honestly wouldn't sit there and take it. Not saying you should go out and hire a lawyer, but you need to contact one of the heads and let them know whats up. You put your future on the line for them and they sold you and then bailed. I know one of the reasons my bank takes awhile to notify candidates is because they will never want to pull this shit. People get mad at HR for the BBs, but they take a long time to get back to us to prevent this from ever happening.

Array
 
TeddyTheBear:
I honestly wouldn't sit there and take it. Not saying you should go out and hire a lawyer, but you need to contact one of the heads and let them know whats up. You put your future on the line for them and they sold you and then bailed. I know one of the reasons my bank takes awhile to notify candidates is because they will never want to pull this shit. People get mad at HR for the BBs, but they take a long time to get back to us to prevent this from ever happening.

Funny you say this because one of the reasons I liked this company was because they were able to make such a hasty decision. Thats why I decided to leave my current company and downsize to a smaller firm because I felt like decisions had less of a corporate ladder to pass through for approval.

 
H34D SH01:
Did you go through a outside head hunter? If you did, call them and say you want them to make it right and promote the shit out of you to all of their clients looking for a new hire.

Yeah thats what I told my outside head hunter and he definitely felt very badly about it and I don't blame him. He thinks its one of the most unprofessional things he's ever experienced as well. In the end though I feel like the head hunters are really only out for the commission because half of them push jobs on you that a) you're not qualified for or b) to firms that wouldn't interest your ideal situation.

 

Their legal team is probably very talented but also VERY expensive. They are not going to waste time and money, especially if they have to use any external counsel, on a small beans employment case. If you bring a case that is semi-legitimate (not saying you have one, talk to your lawyer) they will settle for something that will at least give you some breathing room till you find something else. Point is, don't not pursue legal action because you think their legal guys will shut you down. It's cheaper for them to just pay you a few month's salary or so to get it to go away.

 
rich426:
My job offer at a hedge fund was rescinded after I was given a written offer letter along with a start date and salary. A couple of weeks after the written offer letter which I had sent back 2 days after receiving, I got a phone call from my recruiter saying that the company is going in a different direction and filling the position with a more junior person and restarting their search.

He claims that in his career he has never seen a job offer rescinded that is not based on a background check or drug test. Has this happened to anyone in their career and is there any legal recourse I can take? Can I get unemployment somehow? Now I am stuck being unemployed with no source of income thanks to this new firm who had given me the impression I'd be starting really soon.

I was very excited to work for this new firm as well and it has literally crushed me and given me the impression that there really is ZERO loyalty or ethics in this industry at all. Any comments, stories or advice would be greatly appreciated. Thanks.

This makes me depressed as fuck. Best wishes op

 

That sucks. I like Booth or Bust's advice. Did they know that you just quit your job? I would feel like such a doucher if I did that to someone.

If your dreams don't scare you, then they are not big enough. "There are two types of people in this world: People who say they pee in the shower, and dirty fucking liars."-Louis C.K.
 
rich426:
My job offer at a hedge fund was rescinded after I was given a written offer letter along with a start date and salary. A couple of weeks after the written offer letter which I had sent back 2 days after receiving, I got a phone call from my recruiter saying that the company is going in a different direction and filling the position with a more junior person and restarting their search.

He claims that in his career he has never seen a job offer rescinded that is not based on a background check or drug test. Has this happened to anyone in their career and is there any legal recourse I can take? Can I get unemployment somehow? Now I am stuck being unemployed with no source of income thanks to this new firm who had given me the impression I'd be starting really soon.

I was very excited to work for this new firm as well and it has literally crushed me and given me the impression that there really is ZERO loyalty or ethics in this industry at all. Any comments, stories or advice would be greatly appreciated. Thanks.

OP let me throw in my two cents. No fund wants to be in a position where they are being bad mouthed, especially given their behaviour in this situation is appalling. Therefore I would do two things:

  1. Arrange to see someone relatively senior within the hiring chain who was influence over recruitment. Explain the situation and reiterate your passion for working at the firm (I'm guessing you aren't that expensive given this has happened - if you were vp or before this would be the talk of the street). Think of this as another interview and go in with the mindset that you are going to show him/her that they really want to hire you. If they come away thinking the added value is there I'm sure they will resolve the situation.

  2. As above but let's say it doesn't go well. I would a) try to get a real understanding of why they changed their mind and get as much feedback as possible so you can improve in future; and more importantly I would ask them where they would recommend you look for another opportunity and if there is anyone they recommend you reach out too. If you do that and this really just is a screw up with HR I would be stunned if the guy won't make a couple of calls and get your name out there given that they thought you were a good fit for their firm.

Hope that's useful. On the lawyering up front I wouldn't do it. You might win, but no one hires that guy.

 

I have never heard of something like this on experienced hires. Newbies out of college yes, but not experienced hires. This firm should be big enough to absorb you into their work force and put you to other use if that said position will be filled by a more "junior" person.

Reach out to their HR and the other people you have met to get a clear picture of what the fuck happened. No one would ever want this to happen to themselves either, so they will understand your frustration and perhaps do something about it.

 

At some point you need to stop listening to the stupid fucking recruiter and go direct. If you get an offer letter, quit your job and then they pull the offer, that is about as bad as it gets. Something happened and the vague bullshit answers that the recruiter is giving you should not be enough. He's going to tell you anything to try and calm you down so you don't go directly to the company to protect HIS relationship. Do you have some incriminating FB photos or anything online? Potentially a bad reference? you google yourself?

Do not "lawyer up" like others have suggested above...that can fuck you long term in the industry. Just go direct to whomever was in charge of the hiring there and ask for a phone call or meeting so you can understand in more detail what happened. If they don't agree to meet with you, I'd draft up a professional letter explaining the situation, with dates/ timeline of events, etc and again just request a meeting. By laying it out in detail in a professional letter they will be forced to face how much they royally screwed you....and if they have any balls they will at least help out in some way (reference, etc).

You aren't going to get the job offer back, but you may be able to find out the truth behind why they pulled the offer which could be crucial information for your future job hunt. In the meantime, get back on the horse asap because the longer you are without a job the harder it gets.

-Patrick

 
WallStreetOasis.com:
At some point you need to stop listening to the stupid fucking recruiter and go direct. If you get an offer letter, quit your job and then they pull the offer, that is about as bad as it gets. Something happened and the vague bullshit answers that the recruiter is giving you should not be enough. He's going to tell you anything to try and calm you down so you don't go directly to the company to protect HIS relationship. Do you have some incriminating FB photos or anything online? Potentially a bad reference? you google yourself?

Do not "lawyer up" like others have suggested above...that can fuck you long term in the industry. Just go direct to whomever was in charge of the hiring there and ask for a phone call or meeting so you can understand in more detail what happened. If they don't agree to meet with you, I'd draft up a professional letter explaining the situation, with dates/ timeline of events, etc and again just request a meeting. By laying it out in detail in a professional letter they will be forced to face how much they royally screwed you....and if they have any balls they will at least help out in some way (reference, etc).

You aren't going to get the job offer back, but you may be able to find out the truth behind why they pulled the offer which could be crucial information for your future job hunt. In the meantime, get back on the horse asap because the longer you are without a job the harder it gets.

-Patrick

This

 
WallStreetOasis.com:
At some point you need to stop listening to the stupid fucking recruiter and go direct. If you get an offer letter, quit your job and then they pull the offer, that is about as bad as it gets. Something happened and the vague bullshit answers that the recruiter is giving you should not be enough. He's going to tell you anything to try and calm you down so you don't go directly to the company to protect HIS relationship. Do you have some incriminating FB photos or anything online? Potentially a bad reference? you google yourself?

Do not "lawyer up" like others have suggested above...that can fuck you long term in the industry. Just go direct to whomever was in charge of the hiring there and ask for a phone call or meeting so you can understand in more detail what happened. If they don't agree to meet with you, I'd draft up a professional letter explaining the situation, with dates/ timeline of events, etc and again just request a meeting. By laying it out in detail in a professional letter they will be forced to face how much they royally screwed you....and if they have any balls they will at least help out in some way (reference, etc).

You aren't going to get the job offer back, but you may be able to find out the truth behind why they pulled the offer which could be crucial information for your future job hunt. In the meantime, get back on the horse asap because the longer you are without a job the harder it gets.

-Patrick

I disagree a little on this one, Patrick. At some point, if the employer won't play ball, OP should consult a lawyer.

It's in the employers' best interest to keep this private, too. If he really does need to sue, OP should aim for a settlement that is quick, private, and reasonable.

 

Sorry to hear this bro...I'm in no way experienced in this subject matter, but my blind guess as to why they would go with a more 'junior' person is because they thought you were(or might become) too expensive(too soon). However, you would think that any shop would do their due diligence on the salary requirements of their staff and if that is what happened, then you probably don't want to work for them anyway. Either way, it is still wrong of them to snatch the rug out from under you like that. Definitely consult a lawyer.

 
tiger2012:
This has happened to me before. Although it sucks, would you really want to be working for a company that does things like this? You probably would have hated the job anyway. Somethings are a blessing in disguise.

This would be my advice as well, but it only seems reasonable in hindsight... when you're in the thick of it and uncertain that you'll ever have a job again you're not really thinking about it this way though, so I understand OP's situation sucks way worse than I could ever feel confident giving armchair advice on.

I hate victims who respect their executioners
 
BlackHat:
tiger2012:
This has happened to me before. Although it sucks, would you really want to be working for a company that does things like this? You probably would have hated the job anyway. Somethings are a blessing in disguise.

This would be my advice as well, but it only seems reasonable in hindsight... when you're in the thick of it and uncertain that you'll ever have a job again you're not really thinking about it this way though, so I understand OP's situation sucks way worse than I could ever feel confident giving armchair advice on.

Just had to say it. In the short-term, things will be very painful. But hopefully you don't have a wife/kids/mortgage etc. and are young. Things will turn around...or if they really don't you'll be too poor to have internet and tell us about it on WSO.

But seriously, best of luck.

 

I beg to differ with those that said suing would prevent you from working in the industry. When we had candidates interviewing for positions this year, one of the candidates sued his previous employer. It only came up in the conversation when we asked what his reason for leaving was. It turns out that his previous firm was harassing him and threatening to fire if he went to his mother's funeral. Anyways they were working on a major deal and he said he will always have phone and internet. He went to the funeral...they fired him and stated that his performance for the year was bad and it was not related to the funeral. He sued for wrongful termination and got some settlement. We understood his story when he interviewed. He was sincere about it. His interview was strong and ended up getting an offer. He didn't take it because he got another offer as well. My point is if your story fits and you can show what they did was cruel...people in the industry will side with you. Obviously...you want to sue within reason as well. If you sue for a million dollars on this, then it will make you look bad and greedy. Talk to the company first and if they say tough luck, then talk to a lawyer and see if they can work something out without going to court.

Array
 
TeddyTheBear:
I beg to differ with those that said suing would prevent you from working in the industry. When we had candidates interviewing for positions this year, one of the candidates sued his previous employer. It only came up in the conversation when we asked what his reason for leaving was. It turns out that his previous firm was harassing him and threatening to fire if he went to his mother's funeral. Anyways they were working on a major deal and he said he will always have phone and internet. He went to the funeral...they fired him and stated that his performance for the year was bad and it was not related to the funeral. He sued for wrongful termination and got some settlement. We understood his story when he interviewed. He was sincere about it. His interview was strong and ended up getting an offer. He didn't take it because he got another offer as well. My point is if your story fits and you can show what they did was cruel...people in the industry will side with you. Obviously...you want to sue within reason as well. If you sue for a million dollars on this, then it will make you look bad and greedy. Talk to the company first and if they say tough luck, then talk to a lawyer and see if they can work something out without going to court.

In my 5 years at a relatively small firm, I know quite a few people threatened action or reached settlements. This industry is full of dubious people, so it's ridiculous to neuter your ability for recourse. Not to say going legal is the best course of action, but it's not a career ender if based on merit.

 

Waiting for Frieds to chime in here, but I think this is called promissory estoppel. I'm not sure how it's handled in New York, but in New Jersey, you'd be able to sue.

http://legal-dictionary.thefreedictionary.com/Promissory+Estoppel

If you go the lawyer route, you want to settle this quietly. VERY quietly. But I think you would have a claim.

Even an amazing legal team can't change facts or the law. A very good lawyer will be able to tell OP if he has a case or not. In such a case, said legal team will want to settle.

Where's Frieds?

 
Best Response

I read through these comments and I would do several of them sequentially.

  1. Go talk to the employer and try to get the job.

Don't talk to the recruiter or some pissant in HR. Get in contact with the boss or the head of the firm. You have to let the secretary know this is urgent and this can't wait a couple of days. Let the boss know what happened. There's a decent chance some idiot along the line made a mistake and the person at the top of the chain didn't even know what happened. Bring your facts and listen to theirs.

  1. If you can't get a hold of the boss, send a certified letter detailing the situation and requesting a meeting.

  2. If no response, hire a lawyer and have the lawyer draft a letter requesting a meeting.

  3. If no response, sue the shit out of them.

This is beyond ridiculous and they need to rectify this. They did something wrong. The idea that you will be blackballed for suing is not true, although I have always heard people say that my entire career. If it gets to this point, try to shoot for damages that increase the longer you are unemployed so they have some incentive to help place you. Most likely they will settle. No 'greedy hedge fund' wants to go to court where they are at the whims of some jury who might take great delight in sticking it to those 'rich guys'.

 

OP, sorry to hear about your situation that really is quite miserable. However, a lot of people are advising you sue the firm. I am not sure if your suit would have much merit. New York is an at-will employment state meaning that unless your contract specifies otherwise (and I am 100% certain that since you are not some rainmaker coming in as PM kind of hire it does not) your employer can fire you for any reason at any time (excluding race, age, gender, and all the other protected classes). Generally this is taken to mean that the reason can be arbitrary or even "unfair" and still legal. I am not entirely sure how the fact that you were not an "official" employee yet plays into the issue.

As mentioned promissory estoppel is a doctrine which could be argued, i.e. that you acted in reliance based upon the promise of employment with them to quit your job, etc, but I do not know how that works in regard to employment law and at-will employment. For example, people that sign a contract to go work for one-firm full-time and then find a better offer and then turn down the first firm are not really penalized beyond possibly being blacklisted etc and many on this board advocate that in these instances the member should take the best offer they can find. Morals aside, this is also not illegal behavior and of a similar situation as yours.

It is possible that a threat of a suit, the fear of poor publicity, being brought into a jury etc may be enough of an incentive for the fund to simply settle. These are things you would need to take up with your lawyer (if you choose to go down this path).

I would agree with above posters in recommending you try to reach out to someone at the fund with power (outside of HR) to advocate your position and see if they can give you any help.

Good luck!

 

Aut voluptates enim voluptatem molestiae officiis. Repellendus commodi nam praesentium. Earum natus quia voluptate aut. Placeat ex voluptatum rem explicabo vitae. Facere praesentium qui sequi aliquid repellendus et qui.

Iure totam officia aut tempora quaerat corrupti. Esse eius voluptas sed voluptatem nulla eius. Numquam voluptatum laboriosam repellat.

Non labore assumenda officiis beatae quia magnam. Maiores ut itaque rem expedita. Quibusdam illum impedit voluptatum quod. Ullam quia voluptates quasi perspiciatis.

Animi accusantium nulla fuga sint. Et modi et nemo. Rem quae accusantium soluta dolores. Sed quod necessitatibus ut molestiae expedita. Sit sint ullam in.

[quote=patternfinder]Of course, I would just buy in scales. [/quote] See my WSO Blog | my AMA

Career Advancement Opportunities

March 2024 Hedge Fund

  • Point72 98.9%
  • D.E. Shaw 97.9%
  • Magnetar Capital 96.8%
  • Citadel Investment Group 95.8%
  • AQR Capital Management 94.7%

Overall Employee Satisfaction

March 2024 Hedge Fund

  • Magnetar Capital 98.9%
  • D.E. Shaw 97.8%
  • Blackstone Group 96.8%
  • Two Sigma Investments 95.7%
  • Citadel Investment Group 94.6%

Professional Growth Opportunities

March 2024 Hedge Fund

  • AQR Capital Management 99.0%
  • Point72 97.9%
  • D.E. Shaw 96.9%
  • Citadel Investment Group 95.8%
  • Magnetar Capital 94.8%

Total Avg Compensation

March 2024 Hedge Fund

  • Portfolio Manager (9) $1,648
  • Vice President (23) $474
  • Director/MD (12) $423
  • NA (6) $322
  • 3rd+ Year Associate (24) $287
  • Manager (4) $282
  • Engineer/Quant (71) $274
  • 2nd Year Associate (30) $251
  • 1st Year Associate (73) $190
  • Analysts (225) $179
  • Intern/Summer Associate (22) $131
  • Junior Trader (5) $102
  • Intern/Summer Analyst (249) $85
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”