Hayden AI has filed a lawsuit against its cofounder, Chris Carson, alleging he committed forgery, engaged in unauthorized stock sales, and stole confidential company information. The San Francisco-based firm claims Carson used Hayden AI’s customer data and contracts to establish a competing business after his termination.
The lawsuit, detailed in a Forbes report, states that Carson is accused of secretly selling $1.3 million of his stake in Hayden AI. The company alleges that Carson forged the signatures of board members to conceal these sales, which were not authorized by the company. Hayden AI stated it fired Carson due to these disputed sales and alleged forgery before initiating legal action.
Allegations of Unauthorized Sales and Spending
According to the complaint filed in California state court, Carson used the proceeds from the alleged unauthorized stock sales to purchase a gold Bentley Continental, a McLaren 750S, and an Aston Martin. Forbes reported that these purchases, along with a Ducati motorcycle, luxury watches, designer handbags, and jewelry, were reportedly financed by Carson to acquire a new $2.7 million home in Boca Raton, Florida. These claims regarding spending and the alleged forgery of board documents are central to Hayden AI’s lawsuit.
Carson has not responded to multiple requests for comment from Forbes regarding the company’s accusations about stock sales or the use of confidential information. The report did not include any statements from Carson addressing the allegations.
Dispute Extends to a Rival Venture
Hayden AI also accuses Carson of taking 41 gigabytes of customer data and contracts. The company alleges this information was used to launch a rival business that offers technology services to cities. Shortly after his dismissal from Hayden AI, Carson secured $8 million in seed funding for a new venture named EchoTwin AI, with Metis Ventures leading the funding round, according to Forbes.
A spokesperson for Hayden AI stated that the company seeks the return of its confidential information and an injunction to prevent Carson from using it in competition. The spokesperson emphasized that while the company welcomes fair competition, it cannot condone competition built upon stolen property.
Hayden AI, founded in 2019 by Carson, Bo Shen, Michael Byrne, and Vaibhav Ghadiok, specializes in bus camera technology designed to ticket vehicles violating bus lane restrictions. The company holds a $20 million contract with New York City for 300 bus cameras and also provides its technology to Washington, D.C., and Los Angeles. In July 2024, Hayden AI raised $90 million, valuing the company at $350 million, with TPG’s The Rise Fund leading that investment round. TPG declined to comment to Forbes on the matter.
The core of Hayden AI’s stated demand remains the retrieval of its confidential information and cessation of its use by Carson in competitive endeavors. This dispute highlights the critical importance of intellectual property protection and fair competition within the rapidly growing artificial intelligence sector, a field seeing significant entrepreneurship and investment, such as the funding raised by Robotics Startup FieldAI.
