The competing stories of the founders of Alantec, Inc. and the venture capitalists who funded the company are explored in the context of Kalashian v. Advent VI Ltd. a California Superior Court case. The founders of the company, which produced switches for computer networks, raised several rounds of funding from venture capital firms that ended up commanding the business's board. After the firm continued to fall short of its sales projections, the founders were ousted by the board and brought in new management.
Alantec then found a new product, "the Power Hub," which became tremendously successful, and the business ultimately went public. The founders sold their remaining shares soon after the IPO. Two years afterwards, Alantec was got for the equivalent of $70 per share. Following the sale, the creators sued, alleging that the venture capitalists had committed fraud and breached their fiduciary duties as commanding shareholders of Alantec. The case delivers actual passage from the trial brief of both the creators and the venture capitalists, and presents competing views on how and why the dilution occurred.
Washout The Founders' Tale and Investors' Tale Case Study Solution
PUBLICATION DATE: November 16, 2010 PRODUCT #: 311078-HCB-ENG
This is just an excerpt. This case is about LEADERSHIP & MANAGING PEOPLE
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