Has anyone dealt with something like this? I'm not sure what my options are.
co-founder leaving before cliff. I've been dealing with this for about 5 weeks now and the situation isn't improving.
I have already tried to resolve this directly but did not get a clear answer.
What are my legal options here? Is it worth pursuing?
Attorney here. Here's my take on the legal issues.
This is a common situation and the law is fairly clear. Under the relevant statute, actionable.
One important thing — there are strict deadlines for filing these claims. Don't wait too long.
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.
Been there. Here's what I learned.
The biggest mistake people make in this situation is having everything documented. I'd recommend keeping a detailed timeline instead.
Not a lawyer, but I have direct experience with this.
The biggest mistake people make in this situation is filing with the appropriate government agency. I'd recommend gathering evidence first instead.
Not a lawyer, but I have direct experience with this.
The biggest mistake people make in this situation is hiring an attorney to send the initial letter. I'd recommend being patient with the process instead.
I've dealt with this before.
I ended up having everything documented, which cost about $3-6 but saved me a lot more in the long run.
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.
Just want to point out — the statute of limitations might be a factor here. In some states it's as short as 1-2 years. Don't sit on this too long.
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.
NAL, but from what I've read, you should file a complaint. That said, definitely get a lawyer to look at the specifics.
I've dealt with this before.
In my case, it took about 2-4 months to resolve. The key was hiring an attorney to send the initial letter.
NAL, but from what I've read, you should check your state's specific laws. That said, definitely get a lawyer to look at the specifics.
Following this thread — I'm in a very similar situation. Would love to hear how it turns out.
I've dealt with this before.
I ended up escalating to a supervisor/manager, which cost about $1-3 but saved me a lot more in the long run.
My co-founder left 8 months in (before the 1-year cliff). Per our vesting agreement, he gets nothing. But he's threatening to sue claiming his "pre-incorporation contributions" entitle him to equity outside the vesting schedule.
We had a written vesting agreement signed by both of us. The agreement explicitly states that no shares vest before the cliff. Is his claim viable?
If you have a properly drafted vesting agreement that he signed, his claim is weak. The whole purpose of a cliff is exactly this scenario. However, he might argue:
These claims are all uphill battles against a clear written agreement, but they're not frivolous enough to get dismissed immediately. Your best defense: the signed vesting agreement with an integration clause. If you have one, his chances in court are slim — but he may be hoping for a nuisance settlement.