What seems to have happened is:

Blue Systems had a contract with Valve to work on KDE; Blue Systems no longer wanted to be in the contracting business; several Blue Systems employees (Nate and someone else) formed a company, Techpaladin, which Nate and that person own; said company bought out the Valve contract from Blue Systems.

Jonathan also worked at Blue Systems but seems to have wanted to be part of Techpaladin as an owner without putting any cash in to buy out the Valve contract from Blue Systems.

That said, leaping straight to workers rights, losing kids, and publicly mischaracterizing the events in this way... smells like crazy.