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Investors Warn Unicorns: Share Info Evenly or Get Sued

  • Investors say they weren’t told what other shareholders knew
  • SEC scrutinizing private markets to ensure fair disclosure

Billionaire and Aon Plc Founder Patrick Ryan sold his stake in Mu Sigma Inc. after learning the founder said the data-analytics startup’s prospects were dimming. Eleven months later, Mu Sigma raised millions in fresh capital at a much higher valuation. Ryan wasn’t happy and sued, arguing Mu Sigma’s founder bought back the stake for an artificially low price and set himself up for a bigger payday. 

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