The O’Brien Law Firm sues Austin startup BalanceCXI dba Zacoustic over compensation disputes
In April 2019, the O’Brien Law Firm sued Austin startup BalanceCXI, Inc., which supplies a SaaS tool (Zacoustic) related to call center metrics and customer experience improvement. The suit was brought by two putative founders of the company, and their LLC, for various claims related to unpaid bonuses, unissued stock options, promised vested shares, and other promised compensation. As alleged in the suit, a conflict in their employments occurred in January 2019 when company CEO and President Tim Lavin withheld the plaintiffs’ earned bonuses and sought to retroactively reduce their salaries because BalanceCXI was underfunded to the point where it was likely in breach of its contractual capitalization obligations to its clients. As further alleged, Lavin terminated both plaintiffs, likely to try to prevent them from obtaining their respective promised 10% and 8% equity interests in BalanceCXI. This was despite the enormous value that the two plaintiffs had brought to BalanceCXI both in terms of real revenue as well as attractiveness to potential venture capital investment. The lawsuit is Cause No. D-1-GN-002374, in the 261st District Court of Travis County, Texas.