A $464 million artificial intelligence startup is accusing its co-founder of forging board signatures, selling stock without authorization, and stealing company secrets to launch a rival firm.
Hayden AI filed a lawsuit last week in California state court in San Francisco, alleging that former CEO and co-founder Christopher Carson orchestrated a fraudulent stock sale, copied 41 gigabytes of confidential data, and used the stolen information to establish a competing company called EchoTwin AI.
According to the New York Post, the San Francisco-based company, which has attracted some $177 million in investor capital, claims Carson created a "phony resolution" bearing forged signatures of board members to authorize the sale of $1.2 million worth of stock in January 2024. The board was allegedly unaware of the transaction. Hayden AI says it ousted Carson in September 2024 over the alleged fraud.
According to the lawsuit, the proceeds from the alleged unauthorized stock sale funded a lavish lifestyle. Carson allegedly purchased and renovated a $2.7 million waterfront home in Boca Raton, Florida, around the same time. He also allegedly spent money on luxury watches, designer handbags, and a fleet of luxury vehicles, including a 2023 Aston Martin.
The case paints a picture of a co-founder who allegedly used his position to enrich himself at the company's expense. Hayden AI says the fraudulent transaction caused inaccuracies in the company's capitalization table maintained on the Carta platform. The company had attracted notable talent, including former Microsoft executive Stuart McKee and former U.S. Transportation Secretary Anthony Foxx, who served a stint on its board.
A Hayden AI spokesperson said: "We spent months attempting to resolve this privately, but it became clear that legal action was needed to protect our team, our customers, and fair competition in our industry."
The lawsuit also alleges that after being removed, Carson threatened to escalate what he characterized as wrongful termination concerns. In communications quoted in the suit, Carson allegedly wrote: "For now I am raising these concerns privately." He then reportedly added a pointed warning about political connections.
"But if they go unaddressed, I will escalate this matter – including through direct discussions with Mayor Eric Adams of New York City, with whom I've already had preliminary conversations," Carson allegedly wrote. The reference to then-Mayor Adams raised eyebrows, but the mayor's office quickly distanced itself from the dispute. Adams' spokesperson, Todd Shapiro, responded bluntly: "Mayor Adams would never get in the middle of a dispute between an employer and employee." Shapiro added, "If I had a quarter for every time someone said they were going to call the mayor, I'd be a rich man."
Perhaps the most consequential allegation involves what Hayden AI describes as wholesale theft of proprietary data. The lawsuit claims Carson directed a subordinate in the company's IT department to copy company secrets onto a USB drive. The suit states: "Armed with 41 gigabytes of Hayden's confidential information, including trade secrets that Carson lifted straight out of Hayden's proprietary data in the form of Carson's entire email file, Carson founded EchoTwin."
EchoTwin AI, based in Boca Raton, reportedly raised an $8 million in seed funding led by Metis Ventures. At least nine Hayden AI employees allegedly defected to the competing firm. Neither EchoTwin nor Metis Ventures responded to requests for comment.
The implications here are significant for investors and the broader startup ecosystem. When a co-founder allegedly walks out the door with gigabytes of proprietary information and immediately stands up a competitor, it raises serious questions about intellectual property protections and corporate governance in high-growth tech companies.
The lawsuit goes further, alleging that Carson fabricated portions of his educational and military background. Hayden AI claims that Carson stated on his resume and LinkedIn profile that he received a PhD from a Japanese university in 2007. The suit calls this a fabrication, alleging: "In 2007, he was not obtaining a PhD but was operating 'Splat Action Sports,' a paintball equipment business in a Florida strip mall."
The company also disputes Carson's claimed military service record. While Carson allegedly said he served in the military for four years, the lawsuit claims he was discharged after only two years. The suit further alleges Carson posed in a uniform "that wasn't from the US Marines but instead from a Myanmar militia."
Carson did not respond to requests for an interview. All allegations remain unproven in court, and no criminal charges have been filed. The case underscores a persistent vulnerability in venture-backed startups: the concentration of trust in founding executives, often with limited independent oversight during the high-growth phase when governance matters most.