In the wake of social media startup Color’s shutdown, a former employee is now suing the exorbitantly-funded startup and embattled CEO Bill Nguyen. TechCrunch reports Adam Witherspoon filed a lawsuit alleging “intentional infliction of emotional distress” and is seeking an unspecified figure in damages.

Among various indiscretions described in the suit are allegations that Nguyen was not only using a portion of the startup’s $41 million in venture funding to pay directly for his family’s nanny as well as a ski instructor, but that he made “vindictive threats” against those who opposed him.

Last month we learned that Color’s talent was headed to Cupertino, and although a lot of misinformation was making the rounds, today’s suit also confirms that the company’s assets have been sold to Apple.

The lawsuit, which you can read in full at TechCrunch, goes into detail regarding Color’s engineering talent being moved to Apple, and how Witherspoon’s severance offer to move on was significantly less than the rest of Color’s staff who would not be joining Apple’s ranks. Even as the Color ship sails into the sunset, it’s fairly obvious that this tale isn’t over yet.

Former Color Labs employee suing the company and CEO Bill Nguyen originally appeared on TUAW – The Unofficial Apple Weblog on Mon, 19 Nov 2012 22:00:00 EST. Please see our terms for use of feeds.

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