That's very likely what occurred and I've been pretty impressed with how the Co has handled the turnaround however--- Could the former founder make an argument

That's very likely what occurred and I've been pretty impressed with how the Co has handled the turnaround however--- Could the former founder make an argument the valuation and structure was artificial. It sounds like they basically diluted him to oblivion by ramping up RSUs and doing a down round. That would open them up to litigation as well. Perhaps the end result is- Conrad doesn't want to get sued - and so they are gambling that he won't sue himself. That works as long as everyone is on board or they get a release from Conrad (in turn he'd want one as well).