Twilio Sued by Authy Founder Over Merger Compensation

May 18, 2017, 8:00 PM UTC

Twilio Inc. is facing a lawsuit from the founder of Authy Inc., who claims the cloud-based communications platform deprived him of millions of dollars in equity compensation after the companies’ 2015 merger (Palacio v. Twilio Inc., Del. Ch., No. 2017-0368, redacted complaint filed 5/17/17).

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Authy’s Daniel Palacio said that when he sold his technology startup to San Francisco-based Twilio, the parties agreed that he would lead the company’s newly formed Authy subsidiary and would be entitled to additional equity pay if certain revenue thresholds were met.

Palacio, who was terminated from his position in December, alleged ...

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