Epinions Settles Stockholder Lawsuit
Epinions has settled the lawsuit brought against it by common stockholders frozen out in the DealTime/Shopping.com acquisition. Financial terms were not disclosed. Alas, because this was not a class action lawsuit and I did not individually participate, the settlement has no bearing on my financial situation. Fortunately, though, it should mean that I avoid a deposition (a low probability, but a possibility nonetheless).
While the settlement should close a messy and divisive lawsuit, it leaves open some questions–most obviously, what is the scope of venture capitalist liability for their dual roles as board members and preferred stockholders in private companies? More guidance on that front would have been helpful. Without the guidance, I wonder how much this lawsuit will affect VC behavior.