Took an equity position as technical co-founder plus cash incentive and they don’t want to pay now. Contract is a bit of mess on top of it.

I’m owed multiple 6 figures for promised sweat equity, but the company isn’t generating what anyone thought it would. There was never a contingency based on success of the company or revenue generated.

My choices are basically sue, or try to dissolve company and negotiate to keep all rights to all digital assets, trademarks, domain, etc.

I’ve spoken to many lawyers and all have different opinions. I initially thought, hell yes it’s worth it to sue for $250k owed to me. But, it’s really not looking to be a good option after all.

The problem is I have little interest in the industry even if I did retain all IP to myself.

Kind of a conundrum.

Would love to hear some perspectives from others who have faced similar circumstances.

  • DbG925@alien.topBEnglish
    1·
    11 months ago

    Depends on what your reputation is worth to you. Word gets around; it may be challenging to find another co-founder once they find out you sued your previous.

    Then there’s the whole squeezing blood from a turnip thing. You can sue to dissolve the company and grab the IP, but if the company was not successful what are you going to pay in legal fees to acquire the IP? Only you can do that math. You are unlikely to see a dime in cash or be reimbursed legal fees.

    Lawsuits suck even if you are 100% correct. You will have to float the fees which can easily last over a year. Remember that the company shields personal liability from the cofounders so you max recovery is the assets of the company.

    I totally understand what you’re going through and it sucks to be wronged like this. But if it were me, I may spend $500 on a lawyer letter demanding an IP assignment and then leave it there. It’s not worth 10s of thousands in legal fees as well as the stress and impact to your mental health. Take it as a lesson to write these types of contingencies into your next contract but don’t cut off your nose just to spite your face.

    Happy to chat in DM. I’ve been through a suing the company lawsuit before.