
Ask HN: Do I need to tell potential investors about a cease and desist letter? - 069432589
Before I start - I know the best way to get legal advice is to pay a lawyer. We already have a lawyer, but answering this particular question would require a different kind of lawyer and would be expensive. I&#x27;m hoping to get some insight from the knowledgeable HN crowd before going that route.<p>This is my first startup and we&#x27;re about to raise a seed round. A while ago my former employer sent me a cease &amp; desist letter, claiming my new company uses their IP. Our products aren&#x27;t remotely similar, and we&#x27;re not using any of their IP. Our lawyer sent him a response detailing why his case was bogus, and we haven&#x27;t heard anything since.<p>Now my question: As a Delaware C-Corp raising money in California, do we need to tell potential investors about the cease and desist? We have not been sued, nor have we received any notice that we will be sued.<p>Alternatively - is anyone willing to share their stories about raising money with a C&amp;D or lawsuit?<p>It seems crazy that our startup might die because of a bogus IP claim.
======
PaulHoule
I don't know if you have to, but if you don't tell investors and then they
find out you are screwed.

