Formerly Calgary-based (and now San Francisco based) StumbleUpon looked like it was on top of the world last year when it was purchased by eBay for $75 million. But the celebration has long since subsided, now that it’s rumoured that eBay is looking to unload their purchase, which many never regarded as a proper fit for the company in the first place (much like their much more expensive purchase of Skype.)
Adding to StumbleUpon’s woes is a $8 million lawsuit filed by Neil Hart, a British man who claims he was cut out of the company’s big payday. According to Hart, he struck a deal to advise the company on investment and business planning for a $1 fee and an eight percent stake in the company, but that his shares were diluted and he was never informed of the eBay offering. StumbleUpon has fired back with a $10 million counterclaim of their own, but no matter how the lawsuit is resolved, the shine of one of Canada’s golden startups has dimmed just a little.