CEO of unicorn startup Zenefits resigns amidst legal scrutiny

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Parker Conrad, who founded software startup Zenefits and acted as its CEO before announcing his resignation Monday, has been replaced by COO David Sacks, a former Paypal executive, according to Reuters.

Zenefits is valued at $4.5 billion, which puts the young company in the coveted 'unicorn' startup echelon, reserved for only the few whose valuation breaks the $1 billion mark.

The company provides automated human resources software solutions for companies, including healthcare benefits and investment options. It ran into legal trouble in Washington when the state began an investigation into allegations the company was using unlicensed brokers to sell healthcare coverage.

In a statement following Mr. Conrad's resignation, Zenefits announced the appointment of a chief compliance officer who will ensure the company is complying to all broker licensing requirements and regulations, according to Reuters

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