If the company was sold for less than it raised, then common stock is usually worthless. Investors have preference on distribution to where they will at least get their money back before any non preferred shares pay out.
I wasn't fully vested.
So you didn't lose "all" your options, right? Or do you mean you didn't even have the first tranche (usually 12 month) options vest?
Well, what actually happened was we agreed to transfer our options to the new company, but the vesting period started over again. Since the old options were worthless anyway, it sounded like a good deal (and it was the only option we were given). So then when we were all fired three months later, nothing was vested.
The old options were worthless because the acquisition price per share was below your strike?