> Is this common behavior for Google, if the story is true?

Google/GV was shit listed by a bunch of startup founders in Portland many years ago because they "stole a company" they were partnering with there. The founder was somebody everybody liked and PDX tech didn't take it well (and yes, we all talk to each other).

This does happen and you need to be very careful with these sorts of arrangements. They know they put stars in people's eyes and I've seen them take advantage of it.