Walden/Tai Lawsuit Ends in Settlement –

SAN FRANCISCO – A lawsuit against William Tai, filed by the Walden Group of Capital Funds, ended in February with a settlement between the two parties and a statement by Walden acknowledging that Mr. Tai had not committed any wrongdoings before his departure from the firm, said Rob Bunzel, Mr. Tai’s attorney.

Neither party would comment on the terms of the settlement, and public records show no specific damages being sought by Walden.

Walden’s suit, filed in September, alleged that Mr. Tai, a former general partner at Walden, had inappropriate dealings involving stocks in two of the firm’s portfolio companies and that he had begun working for Institutional Venture Partners (IVP) before officially departing Walden (VCJ, December 1998, page 5).

Mr. Tai could not be reached for comment. Walden founder Art Berliner had little to say about the case, except that his firm was pleased with the settlement.

Reid Dennis, founder of IVP, said his firm found the settlement “totally satisfactory” and called it an appropriate resolution of the matter. “We know he did nothing wrong, so their saying so is fine with us,” Mr. Dennis said.

The settlement also addressed the disposition of Mr. Tai’s interests in Walden funds, although neither Mr. Bunzel nor Mr. Dennis was specific about how those were handled.