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Convertible Note Issue — 409A valuation for option grants

Started by confused_employee_IL · Aug 27, 2024 · 2,170 views · 22 replies
For informational purposes only. This is not legal advice. Laws vary by jurisdiction. Consult a qualified attorney for advice specific to your situation.
CE
confused_employee_IL OP

I'm in a difficult situation and trying to figure out my next steps.

409A valuation for option grants. I've been dealing with this for about 12 months now and the situation isn't improving.

I have already done some research online but the other party is not cooperating.

Am I overthinking this or is this a real legal issue worth pursuing?

NR
NurseUnion_Rep

Not a lawyer, but I have direct experience with this.

In my case, it took about 1-3 months to resolve. The key was escalating to a supervisor/manager.

WD
worried_driver_NC

I work in this industry and unfortunately this is very common. The good news is that when people actually push back with legal representation, companies usually settle.

TL
Mod_TermsLaw Moderator

I specialize in this area of law. Here's my take on the legal issues.

This is a common situation and the law is fairly clear. Under the relevant statute, actionable.

You should consult with a local attorney who handles these cases. Many offer free initial consultations.

SA
seeking_advice_student_2025

Following this thread — I'm in a very similar situation. Would love to hear how it turns out.

AF
asking_for_friend_employee_advice

I work in this industry and unfortunately this is very common. The good news is that when people actually push back with legal representation, companies usually settle.

JC
just_curious_parent_2024

Following this thread — I'm in a very similar situation. Would love to hear how it turns out.

TA
TenantRights_Advocate

Not a lawyer, but I have direct experience with this.

I ended up escalating to a supervisor/manager, which cost about $1-3 but saved me a lot more in the long run.

WH
worried_homeowner_GA

Have you tried reaching out to your state's consumer protection office? They sometimes have free resources or mediation services.

CA
ConsumerAdvocate

Not a lawyer, but I have direct experience with this.

The biggest mistake people make in this situation is having everything documented. I'd recommend keeping a detailed timeline instead.

AR
anon_renter_MA

This happened to me too. Have you tried filing a complaint with the relevant agency? In my case they investigated and it got resolved without needing a lawyer.

AR
anon_renter_2026

Have you tried reaching out to your state's attorney general? They sometimes have free resources or mediation services.

PN
Photographer_NYC

Been there. Here's what I learned.

In my case, it took about 2-4 months to resolve. The key was hiring an attorney to send the initial letter.

AP
anon_parent_WA

NAL, but from what I've read, you should send a written demand. That said, definitely get a lawyer to look at the specifics.

PN
Photographer_NYC

I've seen this play out several times in my field.

The biggest mistake people make in this situation is filing with the appropriate government agency. I'd recommend gathering evidence first instead.

JC
just_curious_freelancer_today

Have you tried reaching out to your state's bar association? They sometimes have free resources or mediation services.

TR
TruckerRights_OH

Been there. Here's what I learned.

In my case, it took about 1-3 months to resolve. The key was escalating to a supervisor/manager.

TR
TruckerRights_OH

I went through almost the exact same thing.

In my case, it took about 1-3 months to resolve. The key was escalating to a supervisor/manager.

FH
frustrated_homeowner_TX

I work in this industry and unfortunately this is very common. The good news is that when people actually push back with legal representation, companies usually settle.

FT
first_time_contractor_WA

This happened to me too. Have you tried filing a complaint with the relevant agency? In my case they investigated and it got resolved without needing a lawyer.

TP
throwaway_parent_NC

NAL, but from what I've read, you should send a written demand. That said, definitely get a lawyer to look at the specifics.

FT
first_time_trader_2023

NAL, but from what I've read, you should file a complaint. That said, definitely get a lawyer to look at the specifics.

AT
anon_trader_GA

I had a similar issue and ended up consulting with an attorney. It was worth the $200-300 for the initial consultation just to understand my rights.

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