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firm hadn t come in and shown them all their mistakes. Basically, they were flying solo. Then Jin and I went off to California for some reason, on a guy s road trip to California and having a great time. When we got back to Boston, we discovered that we d been sued. Me, Eve, and Tracy got sued in Delaware Chancery Court. I thought, God damn that lawyer, Sam, he lied to me; he told me we wouldn t get sued! And I later realized that Sam had been right and wrong. They still had control of the company checkbook. Even after he d been voted out as CEO and the new board had been voted in, the VCs had gotten their pet CEO to write a $1 million check from the company checking account to their lawyers so that they could have this shareholder lawsuit without paying for it. This was an unauthorized looting of the company on behalf of one set of shareholders. It was probably illegal, but in Massachusetts it could take years to recover that kind of money. And they figured it s not going to be a big deal because we ll still have control of the company; we ll impoverish this guy with an onerous lawsuit. He ll never have enough money or staying power to come after us in Massachusetts for looting, and maybe he ll never find out. So now I had to defend this lawsuit. I had to hire Delaware counsel, which was very expensive. It basically consumed all my assets over 2 1/2 months. But they had a case that really couldn t be won, since they were minority shareholders. Let s say you have one share of IBM and you go to the Delaware court and you say, I want to control IBM; I feel like I m entitled. There s really nothing holy left in America: religion s not holy, the family isn t holy, marriage isn t holy, but the only thing that s really left that is holy to Americans is ownership. And that s what the courts are there for. They are there to preserve the rights of owners of things. So when you go to court and say, I don t own this thing, but I want to control it, you are almost guaranteed to have a poor reception. Eventually, the VCs simply bought my shares, partly so that they wouldn t be prosecuted for the next 5 years in Massachusetts court for the looting, partly because they wanted control of the company, who knows. It was stupid. If they wanted to buy the company from me and run it however they wanted when I was sitting in my bathtub reading the New Yorker magazine 6 months earlier, they could have done it at a lower cost without all this Sturm und Drang, and everyone would have lived happily ever after. But it never occurred to them that I would want to do something else with my life. They were very worried about me competing with them and starting a new company. I had been programming sitting at a desk for 23 years, working on Internet apps for 10 years did they really think that I would take all my newfound money and freedom and program some more In fact, I went traveling for a while, and then I went to flight school and got my private pilot s license and bought an airplane and went to Alaska, and all through this time, they were busy losing money.
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