Portland-based software entrepreneur Jim Wolfston has filed a $350 million lawsuit against Rubicon Technology Partners, a Colorado private equity firm, alleging that the company misled him during the sale of his business and subsequently terminated him just months after the deal was finalized.
Wolfston, the founder of CollegeNET, a software company that facilitates campus scheduling for colleges, claims that Rubicon violated both his employment agreement and the promises made during their negotiations. The legal dispute, filed in Multnomah County Circuit Court, centers on Rubicon's acquisition of a 65% majority stake in CollegeNET earlier this year and the events that followed.
Lawsuit Details and Allegations
According to the lawsuit, Wolfston had been seeking minority investors in order to reduce debt and fund new product development, with the ultimate goal of significantly increasing CollegeNET's valuation. A broker introduced him to Rubicon, which expressed interest in acquiring a majority stake. Wolfston agreed to the deal after receiving assurances that he would continue to lead the business.
"Rubicon is backing the existing CollegeNET management team to pursue the next phase of the company’s growth", the investment firm stated in a December 2024 message, cited in the lawsuit. "An important part of Rubicon’s strategy is to ensure that management remains its partner throughout its ownership of the business and has incentives for its success that are aligned with those of Rubicon."
Rubicon officially acquired its 65% stake in CollegeNET in March 2025. While the purchase price was not disclosed, the lawsuit noted that CollegeNET had previously been valued at $150 million. Wolfston contends that he turned down a higher offer from another bidder, as that party had planned to cut costs rather than invest in the company’s growth.
However, Wolfston alleges that Rubicon quickly deviated from its commitments. The suit claims the firm blocked his efforts to develop new products, implemented cost-cutting measures, and took actions that conflicted with agreements CollegeNET had established with its clients.
Termination Sparks Legal Battle
The situation escalated in August 2025 when Rubicon terminated Wolfston’s employment. The lawsuit asserts that Rubicon accused him of "disparaged" behavior against the firm and alleged "gross misconduct." The termination came after Wolfston voiced concerns about Rubicon's management of the company.
In addition to financial damages, the lawsuit demands back pay, the return of personal emails, and the recovery of property and memorabilia associated with Wolfston’s tenure at CollegeNET. It also includes a claim for punitive damages.
Company Background and Next Steps
Founded in 1977, CollegeNET employs approximately 125 people, with 80% of its workforce based at its headquarters in Portland's Fox Tower. The company has established itself as a key player in the higher education sector, providing software solutions for scheduling classes and campus events.
Rubicon Technology Partners has not yet filed a response to the lawsuit and did not reply to requests for comment. While disagreements between business founders and new owners are not uncommon in mergers and acquisitions, the speed and apparent severity of the breakdown in this case have drawn significant attention.
As the legal proceedings unfold, the outcome of Wolfston’s case could have broader implications for entrepreneurs seeking to partner with private equity firms in the future. CollegeNET’s future direction under Rubicon’s management remains unclear as the legal battle continues.
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