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.

Law360 UK

UK Financial Services

Read Our Latest UK Legal News & Analysis

Financial Services Law360 UK and Insurance Law360 UK provide breaking news and in-depth analysis on U.K. and European Union regulation, enforcement, legislation, and litigation involving banks, investment firms, insurers, and more.