[psyklic]

Every communication referenced was in writing. The equity was only one of many very unsavory things that happened, and I eventually had to hire a lawyer. He suggested we sue and took the case on contingency, but by that time the company had minimal assets.

[DropInIn]

So, since the a hole engaged in fraud the veil was broken, no?

That makes them personally liable iiuc...

[psyklic]

Perhaps I was too nice. Most VCs recommended dropping/settling the case, since

(1) it was only a year and many startups go bust anyway;

(2) the best people spend their energy on the future, not the past; and

(3) regardless of the facts, many people are wary of working with someone who sued his business partner personally. (As Trump shows, portraying yourself as the victim of a baseless lawsuit often elicits sympathy, while justifying bringing a lawsuit often requires a careful factual explanation.)

[DropInIn]

I'd say you were too nice.

Even if it didn't help you personally, having pursued it more vigorously would have been a public good as it would ensure a documented record of the misdeed which future prospects could use to avoid the bad actor, as well as discouraging new bad actors from developing as they would see the loss rate as exceeding the win rate etc.

As long as everyone keeps letting shit go, letting bad actors off without penalty just because it would take more effort than it was personally worth, then we will continue to see these behaviors manifested and likely at an increasing rate as it proves it's effectiveness.