A San Francisco-based AI startup, Hayden AI, has filed a lawsuit against its former co-founder and CEO, Chris Carson, alleging that he engaged in fraudulent actions and stole a significant amount of proprietary information before being ousted from the company in September 2024.

According to the lawsuit filed in the San Francisco Superior Court, Hayden AI claims that Carson undertook numerous fraudulent actions, including forged board signatures, unauthorized stock sales, and improper allocation of personal expenses. The startup also alleges that Carson, who has since founded a rival company called EchoTwin AI, stole a 41GB trove of emails and other sensitive data in the days leading up to his departure.

Ars Technica previously covered Hayden AI's recent product expansion in Santa Monica, California, where the company's spatial analytics tools are being used to monitor and protect bike lanes.

Attempts by Ars to reach Carson for comment via LinkedIn, email, and text message on Wednesday were unsuccessful. The former CEO has not publicly responded to the allegations.

The lawsuit represents the latest high-profile dispute within the rapidly evolving AI industry, where competition for talent, technology, and market share can sometimes lead to bitter legal battles. As AI startups continue to push the boundaries of what's possible, the industry is likely to see more such conflicts arise in the years ahead.

Hayden AI's lawsuit against its former CEO highlights the importance of robust data security practices and the need for startups to carefully manage the departure of key personnel. The case also underscores the growing scrutiny and legal risks facing AI companies as they strive to maintain a competitive edge in a rapidly evolving market.

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AI Startup Sues Ex-CEO for Stealing 41GB of Email, Lying on Résumé