Zenefits CEO David Sacks just announced a deal with its investors to give them a bigger chunk of the company in exchange for their agreement not to sue. In May 2015, investors plowed $500 million into Zenefits for about 11% of the company, valuing the then 2-year-old business at $4.5 billion. The new deal gives them 25% and revalues the company at $2 billion. In exchange, investors must agree not to sue the business after it disclosed that it was under investigation by multiple states for selling insurance without a license, and it openly accused its founder, ex-CEO Parker Conrad, of writing a computer program used by employees to "circumvent a state licensing requirement," as Sacks puts it. Sacks was the COO at the time and also an investor who had put in millions of dollars of his money. But he says that he had no idea about this program. As soon as he found out, he took action, Conrad resigned, and has been cleaning everything up ever since. … [Read more...] about Zenefits Cuts Its Valuation in Half to $2 Billion in New Deal With Investors