That's very likely what occurred and I've been pretty impressed with how the Co has handled the turnaround however---
Could the former founder make an argument the valuation and structure was artificial. It sounds like they basically diluted him to oblivion by ramping up RSUs and doing a down round. That would open them up to litigation as well.
Perhaps the end result is- Conrad doesn't want to get sued - and so they are gambling that he won't sue himself. That works as long as everyone is on board or they get a release from Conrad (in turn he'd want one as well).
Could the former founder make an argument the valuation and structure was artificial. It sounds like they basically diluted him to oblivion by ramping up RSUs and doing a down round. That would open them up to litigation as well.
Perhaps the end result is- Conrad doesn't want to get sued - and so they are gambling that he won't sue himself. That works as long as everyone is on board or they get a release from Conrad (in turn he'd want one as well).