Venture Capitalists Settle Suit Over Stock Sale

Law360, New York (December 8, 2005, 12:00 AM EST) -- Dispelling the myth that venture capitalists are immune to lawsuits from company employees, three well-known VC firms have settled a federal lawsuit with former employees of an eBay Inc. subsidiary.

The Silicon Valley firms were sued in January in Superior Court for the State of California by 51 former employees of California-based startup Epinions Inc. They alleged the firms had convinced them to give up their stock prior to a lucrative initial public offering.

The initial complaint named individual investors at Benchmark Capital Management Co. LLC,...
To view the full article, register now.