Silicon Valley Abuzz Over Epinions Lawsuit
Silicon Valley Abuzz Over Epinions Lawsuit: "An unusual lawsuit filed against several prominent venture capitalists is ruffling feathers in clubby Silicon Valley, where most financial disputes between investors and entrepreneurs are worked out in private.The suit was brought by three co-founders and 45 former employees and contractors of Epinions Inc., who claim they were cheated out of their share of a more than $200 million payoff when their once failing dot-com startup merged with another company called DealTime Ltd. and went public.
The renamed company, Shopping.com Ltd., continues to trade with a $395 million market capitalization. It also is named in the suit.
The venture capitalists in the dispute - Benchmark Capital, August Capital and BV Capital Management LLC - reject allegations they misled the former employees to convince them to give up their Epinions shares. They also say they didn't distribute false information or withhold news of a crucial deal with Google Inc., as the suit claims. "
posted by Jen @ 5:30 am
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