Color, the mobile social network that raised over $40 million, is shutting down permanently. Yesterday Pulse2 wrote about how an ex-employee is suing Color founder Bill Nguyen over emotional distress and retaliation. “Alert: We hope you’ve enjoyed sharing your stories via real-time video. Regretfully, the app will no longer be available after 12/31/2012,” said Color on their website.
Color has distributed some of their assets to shareholders and they will receive a wire transfer on Monday according to Harmeet Dhillon. Mr. Dhillon is the lawyer for the aforementioned ex-employee (Adam Witherspoon) that is suing Bill Nguyen.
Mr. Witherspoon is an early employee at Color and was a shareholder in the company. Color had struck a deal with Apple to hire around 20 of their engineering team members and buy their assets.