I wonder if the same material (projections, etc.) given to the VC people were given to the employees when they were asked to give up their shares? In my opinion, that would be the only fair way to do it.

This is a little more complicated because some of the VCs were directors in addition to stockholders, so they would get additional information that is typically only available to directors. Note that current employees also can have significantly more information than outside stockholders. Eric.