- After ousting its CEO, privately held Zenefits (ZFIT) is facing a rising scandal with insurance regulators in multiple states opening probes into the start-up and its compliance challenges.
- The company replaced CEO Parker Conrad Monday with COO David Sacks, and added venture capitalist Peter Thiel to its board.
- While Washington state has opened a probe, there's no word on whether California has launched an investigation. A Zenefits spokeswoman says the company is affirmatively reaching out to all 50 states on the matter.
- The company also lost its biggest client last week when Jet.com departed during a renewal period. Sam Blond is reportedly out as head of sales, replaced by interim sales chief Jeff Hazard.
- Previously: Zenefits CEO Conrad resigns; COO Sacks takes over, Thiel joins board (Feb. 08 2016)