Hayden AI filed a lawsuit against its former CEO, Christopher Carson, on February 23 in the San Francisco County Superior Court. The company claims Carson copied dozens of gigabytes of confidential data before leaving the firm and used it to launch a competing business.
An internal investigation began in the summer of 2024 after concerns were raised about possible misconduct.
The lawsuit against Carson includes allegations of breach of contract, misappropriation of trade secrets, and unauthorized access to corporate systems.
Gigabytes Of Corporate Data
According to Hayden AI, Carson led the company from June 2023 until September 10, 2024. Shortly before his dismissal, he downloaded a copy of the company’s corporate email archive. The archive totaled about 41 GB and contained internal correspondence, operational data, and the company’s trade secrets.
After leaving the company, Carson founded the startup EchoTwin, which develops AI-based solutions for urban infrastructure management and, according to Hayden AI, competes with its products.
The company also claims the former CEO is using the materials while working with its clients and partners.
Share Deals Without Approval
The lawsuit states that on January 22, 2024, Carson sold 500,000 company shares for $1 M without notifying the board of directors or investors. Later, he created a document that allegedly confirmed board approval of the transaction.
On August 16, 2024, during a conversation with lawyers, Carson admitted that he had used the signatures of board members from another document to create a forged board approval. The document was meant to retroactively legitimize the sale of 500,000 Hayden AI shares for $1 M without investor consent.
Hayden AI also claims that the former CEO signed 14 forward contracts with eight buyers. Under the agreements, he received about $1.26 M in exchange for a commitment to deliver 700,721 shares in the future.
The plaintiff is seeking a court order banning the use of confidential data and demanding compensation for damages.
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