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by dennisgorelik 4195 days ago
I don't get it.

There is no reason to sue struggling startup, because if you sue for too much then the startup would simply fold.

That's the main way startup protects itself.

Struggling startup usually does not have funds to lawyer up.

BigCo on the other hand is a very attractive target, but has funds to lawyer up.

If struggling startup successfully transitioned to BigCo then potential exposure from past shortcuts is small (relative to BigCo revenue).

How could "contractor vs employee" shortcuts applied in 4 people startup be a significant problem for BigCo (which already transitioned into lawyered up way of doing business)?