Breakout Session 1: Securities law risks for VC-backed firms

Constant pressure for growth combined with an urge to “move fast and break things” has drawn attention from the SEC, the Department of Justice, and other regulatory agencies. The SEC’s recent enforcement action against Zenefits, controversies involving Uber, and reports of conduct at Theranos all highlight the extent to which VC-backed firms can wind up in litigation environments that
some VCs mistakenly think afflict only publicly traded firms. Efficient compliance is the solution, and this session explores techniques that can help minimize this exposure, and strategies for responding to government interest if a problem arises.

Session Material

• SEC: San Francisco Software Company and Founder Settle Charges of Misleading Investors About Business
• It’s Hunting Season. For Unicorns? Lawsuit Against Theranos Signals Trend In Investors Going After Late-Stage Start-ups
• Keynote Address at the SEC-Rock Center on Corporate Governance Silicon Valley Initiative
• Uber Report
• Zenefits Action
• Uber is a private company. How can investors bring a securities class action?