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VC Deal Negotiation — 409A valuation for option grants

Started by worried_trader_FL · Mar 7, 2025 · 818 views · 12 replies
For informational purposes only. This is not legal advice. Laws vary by jurisdiction. Consult a qualified attorney for advice specific to your situation.
WT
worried_trader_FL OP

I've been trying to resolve this on my own but I'm stuck.

409A valuation for option grants. I've been dealing with this for about 7 months now and the situation isn't improving.

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

What's the typical outcome in situations like this?

GL
GigWorker_LA

I went through almost the exact same thing.

I ended up having everything documented, which cost about $3-6 but saved me a lot more in the long run.

JC
just_curious_tenant_WA

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

TL
Mod_TermsLaw Moderator

Licensed attorney — a few thoughts. Here's my take on the legal issues.

The key question is whether the applicable statute of limitations has run. Depending on your jurisdiction, you typically have the relevant statute years for this type of claim.

The practical consideration here is cost vs. potential recovery. For disputes under $10K, small claims court is often the best route.

TE
throwaway_employee_MA

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.

FE
frustrated_employee_GA

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.

DF
desperate_freelancer_question

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

EA
EstatePlanner_AZ

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.

EA
EstatePlanner_AZ

I've dealt with this before.

I ended up filing with the appropriate government agency, which cost about $4-8 but saved me a lot more in the long run.

SB
SmallBizOwner_NYC

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.

FI
frustrated_investor_IL

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

AF
asking_for_friend_contractor_2022

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.

SA
seeking_advice_employee_GA

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.

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