Headlines:
Case Review: Protecting Startup Cofounders.
This year (2024), we've successfully represented 3 startup cofounders who faced unfair treatment from their companies. These cases highlight a common issue: cofounders being squeezed out or frozen out just as large investments or profitability are imminent.
Companies involved in fundraising are highly motivated to resolve these disputes quickly and confidentially through pre-litigation mediation. Public legal battles can severely damage a startup's fundraising potential, especially when the cofounder alleges wrongdoing.
Early mediation has been very successful for us in these cases because:
CONFIDENTIALITY:
- • Protects the startup's reputation
- • Maintains a positive environment for future growth
SPEED:
- • Avoids lengthy and expensive lawsuits
- • Allows founders to move forward sooner
FAIRNESS:
- • Results are not always fair in litigation. Especially in complex business matters, a mediated settlement can frequently be a better result than one could receive in court
OUR RESULTS SPEAK FOR THEMSELVES:
We participate aggressively in facilitative mediation. We bring in forensic accountants and valuation experts where appropriate. Frequently, in addition to our client’s mediation statement and expert reports, we submit a draft complaint and discovery requests, so the company can see what it faces if the matter does not settle at mediation.
Through skilled negotiation in pre-litigation mediation, each of our clients referenced above secured multi-million-dollar payouts.