Employees, don't let founders to that to you. And there's recourse--few judges would allow this sort of thing to stand.
Check out the first comment:
"My husband was an OnLive employee as well. One of those employees who puts in a full day in the office then comes home and puts in another 3-4 hours from home. We are currently pregnant with our second child and I have numerous serious health issues complicating pregnancy even further. My husband has been staying up until 1:00am night after night lately working for OnLive, only to come to work this morning to find out we have no job effective immediately, our stock is now worth nothing, there will be no severance, and if we don't find a solution for health insurance before the benefits lapse on the 1st of the month then my pregnancy will become a preexisting condition and we will be on the hook for all of the out of pocket costs ourselves. We went through job loss when the economy first crashed, so we have no savings or available credit to fall back on. Steve Perlman - you have NO soul. I hope the tech world begins to see you for exactly what you are and that investors blacklist your future ventures. You come out on top and your dedicated employees who have been giving above and beyond are left to lose everything." -Stephanie Tait