Bruce Perens

Ex employees of Monta Vista, the embedded Linux company, are telling me that they are being paid $0 for the sale of their company to Cavium Networks while USD$44 Million goes to the holders of three series of preferred stock. CEO Jim Ready and another executive are taking parachute payments and either retention or severance payments to the tune of 1 to 2 Million a piece in addition to anything they make from holdings in the preferred rounds.

I wasn't aware that Monta Vista went bankrupt, and a merger or purchase of a company isn't a liquidation, so I'm not at all clear how they can pay only the preferred stockholders. The employees need a good securities attorney.