There was a story a year or two ago about exit where company was sold for $350m but all employees for nothing, even the founders.

Happens all the time and doesn't mean anyone got screwed. A couple years ago Lacework sold to Fortinet for around $200m. That sounds like a nice exit for everyone, right? But this was after they'd raised $1.8b at a valuation north of $8b, which, ouch. When founders and employees fail this completely, yeah, their equity is going to zero.

Of course there are other cases where people do get genuinely screwed. My point is only that the cash value of an exit, even when it's a big number like $350m, doesn't tell you much.

OK, so what? Were any contracts violated?

Is it better to be screwed without contract violation?

Your question makes no sense. So far we haven't seen any evidence that @josefritzishere actually got screwed on this deal. Color me skeptical.

What makes no sense about the question? If you're saying that it's impossible to be screwed without a contract violation, then I very strongly disagree.

(Not commenting on josefritzishere's situation specifically, as I know nothing about that.)

> Everyone knows that the most likely value of employee equity compensation in privately held companies is zero.

Most people (on the employee side) realize this is true if the company does not make a successful exit but only learn that the company can both exit AND their equity can be erased via dilution and preferences the first time they are screwed thusly.