Surf Air co-founder sues the Santa Monica membership airline for $125 million
Surf Air CEO Jeff Potter, investor William Woodward and Executive Chairman Sudhin Shahani next to one of the members-only airline’s aircraft at Hawthorne Municipal Airport this year.
One of the founders of Surf Air is suing the all-you-can-fly membership airline, saying the Santa Monica start-up and its venture capital lenders diluted his stake.
In the suit, Dave Eyerly alleges that Velos Partners, Anthem Venture Partners and Base Ventures illegally took control of Surf Air, fired Eyerly and diluted his equity in the company.
“Dave has been cheated out of his 12.5 percent ownership -- the benefit of his innovation and efforts. Dave was the victim of a complex and malicious scheme,” said the complaint, filed in Los Angeles Superior Court. “Dave was shocked when he learned that he owned only .75 percent of the company he conceptualized and founded.”
In a statement, Surf Air spokesman Charles Sipkins said: “Surf Air will always defend itself against meritless litigation and is confident this case will ultimately be dismissed.”
Eyerly is asking for damages “in excess of $125 million” as well as punitive damages.
The suit notes that, ironically, Velos Partners was co-founded by Eduardo Saverin, the Facebook co-founder who himself saw his stake in Facebook diluted by Chief Executive Mark Zuckerberg.
Surf Air was founded by Eyerly and his brother, Wade. The company launched its inaugural flight two years ago and has gone on to become a successful airline, offering members unlimited service on short-hop flights starting at $1,750 a month plus a $1,000 sign-up fee.
It offers up to 90 daily flights between 12 cities, nearly all of them in California. The suit contends that Surf Air is now valued at more than $1 billion.
Twitter: @byandreachang
