Founder Disputes & Business Divorces

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One of the most overlooked and under-appreciated aspect of starting a business with other people is the human relationship.

Like in any partnership, there is bound to be the occasional disagreement, misalignment, or misunderstanding, and sometimes ultimately the parties just need to go in a different direction.

At Foundry Legal recognize the human element in all business relationships and seek to find pragmatic solutions to disputes between founders / business partners, so everyone can move on.

Sometimes a simple reorganization is in order, and we can work with the owners to craft a solution that allows the business to move forward.  However, if a breakup is inevitable, we can help move the group toward a negotiated exit without resorting to costly litigation. 

Some of the legal issues you may encounter in the context of a business breakup are:

  • Buyout negotiations and settlement
  • Reorganizations to reflect new co-founder equity splits
  • Structuring of partner or shareholder purchase agreements
  • Intellectual property assignment or transfer issues
  • Responding to or initiating pre-litigation settlement demands

And if it comes to litigation, as sometimes it does, we can help with that too.   

Representative Matters

  • Obtained favorable cash settlement for ousted co-founder, resulting in amendment/retraction of defamatory claims against the co-founder and dismissal of the other founders’ complaint for declaratory judgment.
  • Resolved joint venture dispute involving alleged misclassification of an employee as independent contractor. Company saved thousands in litigation fees and obtained full and final release of claims.
  • Negotiated final settlement and release agreement between disputing co-founders, allowing one co-founder to exit the business and the remaining designers to continue with the business without further disruption.

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Foundry Legal is a law practice.  We primarily focus on data privacy, emerging technology companies and social impact organizations, and capital formation through private securities offerings and strategic investments/acquisitions. 

Occasionally we will find an issue that really, really goes against something we stand for and when that happens we won’t hestitate to get involved.  

The firm serves clients across a range of industries, including new agriculture, financial institutions, aerospace, and professional services.  We are in Denver, Colorado.  Other stuff about us

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