Uber made a small splash last month when it hired Lyft's former COO Travis VanderZanden. Kara Swisher said the move "will surely increase tensions between Uber and Lyft, which are now pretty tense as it is." And she was right: Lyft is suing VanderZanden, alleging that he took company secrets along with him to Uber.
CMEA Capital, a San Francisco-based venture capital firm, has settled a sexual harassment lawsuit filed in March, 2013 by three female executive administrative assistants. The complaint, which is embedded below, alleges "pervasive and severe" sexually and racially charged statements and actions made by former chief operating partner John Haag, including using "Shaniqua" as a derogatory nickname and telling one of the defendants that the other defendant was "fine" and that he would "suck her daddy's dick."
Kickstarter has decided to update its famously laissez-faire attitude when it comes to protecting donors who have pledged more than $1 billion through the company over the years. The new terms state that a successfully funded campaign that fails to produce "rewards," i.e. the product, may have to "return remaining funds." If not, they could be "subject to legal action by backers."
Former AngelHack CEO Greg Gopman was just as toxic towards his own startup as he was towards homeless people. In a lawsuit filed this month in California State Superior Court, his cofounder Sabeen Ali claims that Gopman used money from AngelHack's bank accounts to pay for personal expenses including his $4,500/month apartment rent, credit card debt, as well as "elaborate vacations" in Thailand and Colombia.
It's hard out there for a rule-flouting, heavily financed disruptor. If it's not government regulators, then it's "frivolous lawsuits," amirite? This time, it's a class action lawsuit filed in California accusing 23andMe of "falsely and misleadingly" advertising their $99 genetic tests. The complaint, which asks for at least $5 million, also says the tests are "not supported by any scientific evidence."
Two financial firms filed a lawsuit in Manhattan federal court today alleging that Twitter had them organize a private sale of its shares and then cancelled the sale—all for the purpose of ratcheting up investor interest prior to its IPO. The complaint accuses Twitter of "using the aborted sale as a way to give the money-losing company a $10 billion market valuation and higher IPO price," says Reuters.
Yesterday, Zynga's lawyers threatened the hook-up app Bang with Friends with a trademark lawsuit. Since then Zynga sources have been whispering that the publicly-traded time bomb has tried to resolve the issue "amicably" for months. But Bang with Friends CEO Colin Hodge vehemently denied that claim.