I'm sorry, the company sold for $145 million with 1,500 employees? It wasn't bankruptcy. Simple math shows it was worth $100k per employee hired. There's clearly positive value there.
They're solely relying upon the fact the employees with common stocks won't sue. To recoup your $100k claim against the equity might take $1M in legal fees.
> Simple math shows it was worth $100k per employee hired. There's clearly positive value there
Not…how capital structures work.
First any debt would be paid. Then preferred-stock liquidation preferences. Then the rest gets divided up among all stockholders, including those with common. (Though not conventionally among those with unexercised options.)
What’s telling, here, is that the shares had to be cancelled. That implies they were due a payout.
They're solely relying upon the fact the employees with common stocks won't sue. To recoup your $100k claim against the equity might take $1M in legal fees.