MBBP’s Employment Practice Group recently obtained a very successful result for a Boston-area venture capital management firm in a jury trial at Middlesex Superior Court. The case involved an ex-managing partner who was hired by MBBP’s client to assist in the fundraising of a new venture capital fund. Soon after starting full-time, the fund terminated the executive’s employment relationship for cause.
Thereafter, the new executive sued both the fund and the senior managing partner for past salary, a carried interest bonus component – both of which the client did not contest – and a portion of the stock ownership of underlying fund investments based on a claim of fraud. After a 5-day jury trial, the jury returned verdicts in favor of the client on all “stock ownership” claims and affirmed that the employee’s termination was for cause.