Experience

  • Venture Capital and Private Equity Liability

Equity Dispute

We assisted our  client in its dispute over the amount of equity that should have been granted to our client.

SEC Administrative Proceeding

We defended, in a hearing before an SEC administrative law judge, a case where the SEC Division of Enforcement sought disgorgement and a bar against a venture capital partner, who was accused of fraud and self-dealing under the Investment Advisers Act and Exchange Act based on his parallel investment in a portfolio company as part of the syndication of the investment.

Venture Fund Partner Dispute

We represented the venture fund in a partnership dispute, which included alleged wrongful termination, oral contracts, and negations for termination agreements, severance and renegotiation of fund valuations.

Venture Capital Firm Dispute and Resolution

Represented venture capital firm in obtaining insurance coverage for defense costs associated with its substantial investment in a portfolio company that faced high-profile investigations commenced by multiple federal agencies.

Morphe Holdings

Advised the co-founders of Morphe Holdings, a global beauty company, in its partnership with General Atlantic, a leading global growth equity firm.

Claims Advocacy for Venture Capital Firm

We represented one of the country’s largest venture capital firms in several disputes with its liability insurer including a dispute concerning coverage for alleged liability arising out of conduct by rogue shareholder representative, in which we obtained a substantial contribution from the insurer to settlement of the underlying matter. We continue to represent the same client in ongoing negotiations concerning coverage for a securities class action filed against the venture capital firm and its appointed board member, arising out of one of the largest losses in the history of venture capital.

Portfolio Company Exit

Represented a storied Sand Hill Road venture capital firm in connection with insurance coverage issues arising out of a medical device portfolio company exit.  Post-closing, the acquiring company brought claims against the venture capital firm, as to which the firm’s VCAP liability insurer initially denied coverage.  Following our involvement, the venture capital firm obtained a substantial settlement contribution from its insurer. 

Bio-IT and Health-IT Venture Capital

Represent a venture capital firm focused on Bio-IT and Health-IT portfolio companies, in connection with a major claim arising out of its investment in a former portfolio company.  The portfolio company and its former management face investigation by both SEC and DOJ, for alleged conduct related to health care industry practices.  We assist the venture capital firm in obtaining coverage for its investigation-related expenses under its VCAP liability insurance coverage. 

Firm Highlights

Publication

Litigation Trends In the Private Equity and Venture Capital Space

In today's Upside episode, we explore fiduciary duty in the venture capital context. Can owners of a venture capital management company act in ways that explicitly disadvantage their business partners? Can they agree to...

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Publication

What You Need To Know About Representation and Warranty Insurance

The allocation of post-transaction risk is a key area where bids for assets can differentiate themselves. And representation and warranty insurance is a great arrow to have in your quiver, whether you are a seasoned...

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Publication

7 Tips to Help Financial Advisor Firms Protect Their Customer Lists

Customer relationships are a key asset for companies in the financial advising and wealth management industry. In California, however, the law is making it increasingly difficult to stop departing employees from soliciting customers after...

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News

Welcome to Upside: A podcast by Farella's Private Equity and Venture Capital Group

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Publication

Importance of Monetizing Intellectual Property Assets of a Portfolio Company

In this Upside episode, we explore developing and monetizing intellectual property assets of a portfolio company. How does a new company go about developing a patent portfolio? And why spend the time and effort...

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Publication

Changes in the VCAP Liability Coverage Market

Over the past few years, there's been a dramatic rise in premiums in the venture capital liability insurance market and a steady increase in claims being submitted under those policies. We're also seeing a...

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