Like many startups, stock options make up for lower salaries.  “As in any start up venture, cash and cash flow are at a premium,” the filing continues.  “Resultantly, association with top talent like Plaintiffs is usually obtained through a combination of cash and stock and/or stock options.”
“Here, that is precisely what was promised would occur given a lack of cash and resources in the fledgling company.”
Only problem?  No payoff as promised, according the founding duo.  So now, the plaintiffs are accusing Tunecore investor Gil Cogan of knowingly defrauding the pair of their rightful earnings.  “Given the evidence known to date, it is believed that Cogan may have never intended to honor the options agreements,” the complaint reads.
“He was intentionally misleading Atencio and Caterine.”
Fool me once, shame on you?  “Defendants want to both have their cake and to eat it to – remaining associated publicly and in name with Plaintiffs and so that the public and artists do not know the truth about them – while simultaneously privately defrauding Plaintiffs.”

“To date, Plaintiffs have been defrauded of their compensation.”

And what about Jeff Price?  “Yes, I was paid for my founder’s share,” Price emailed us.  But that doesn’t mean he’s not a problem for Tunecore’s current brass.
Here’s a copy of the filing.