Tech Founder Business Divorce: Equity Concerns and Litigation Pitfalls

Description

A highly experienced panel consisting of a startup corporate attorney, two litigation attorneys and a mediator/arbitrator will discuss how to navigate founder and co-founder disputes and disputes with venture capital investors and board members.  

 What do tech founders need to know when they divorce their cofounders or their venture investors and board members divorce them? Join us for this informative presentation regarding how to both prevent and attack founder business divorce from corporate and litigation attorneys.

This webinar is geared towards litigators who want to understand more about how tech executives and employees are compensated in equity, and to corporate attorneys who seek to learn more about how they can prevent business divorces with a combination of Offer Letters, Restricted Stock Purchase Agreements, and Board Resolutions.

Many startup companies fail as a result of contentious disputes among the cofounders, venture investors and board members. Attorneys representing cofounders in a "business divorce" will encounter a myriad of issues in advocating on behalf of their clients as well as trying to resolve their clients' disputes. This panel will feature the perspectives from a startup corporate attorney, litigation attorneys, and a mediator/arbitrator on how to navigate co­ founders through these very contentious disputes.

Common Dispute Scenarios

Several common issues can lead to expensive litigation: management disagreements, control issues, and mismanagement and misconduct.

Topics

• What are the different types of equity a founder can receive from an early-stage startup?  What about after a venture capital financing event?
• What measures can corporate attorneys put in place from the get-go to prevent     business divorce?
• Typical right of first refusal and 4:1 vesting provisions in Restricted Stock Purchase Agreements     
• Are there remedies described on the governing state corporate code?
• What are the best tips for companies seeking to oust a cofounder, especially in light of personal liability risks when cofounders in California have not been paid in accordance with wage and hour?
• What are the best tips for cofounders who are being ousted?
• Considerations on advising co-founders before the initiation of litigation or arbitration
• The thorny legal and practical issues for litigators in representing cofounders in litigation or arbitration
• The perspectives from a mediator/arbitrator on resolving and/ or adjudicating co-founder disputes.

Speakers

Lindsey S. Mignano, SSM

Elizabeth Pipkin, McManis Faulkner

John D. Pernick, Bergeson LLP

Moderator

Frank Burke, Frank Burke Mediation and Arbitration PC

MCLE

1.50 Technology in the Practice of Law Credit