Zenefits Compensates Investors Over Past Misconduct
BySAN FRANCISCO — Zenefits investors are getting a larger piece of the troubled human resources start-up because they overpaid for their stakes, unaware that the company’s sales teams flouted regulations to enhance growth, Zenefits announced on Thursday. The move will cut the company’s valuation in half, to about $2 billion.
The unusual agreement comes after months of turmoil at Zenefits, once a high-flying company that helps small businesses buy insurance. The company, based in San Francisco, failed to comply with health insurance regulations in some markets. Parker Conrad, co-founder and chief executive, stepped down in February after admitting that he created the software employees used to bypass insurance brokerage regulations…
Zenefits Compensates Investors Over Past Misconduct
