News

July 13, 2023

Stability AI cofounder sues CEO Mostaque and company over 'brazenly deceitful' share sale

The lawsuit claims that Mostaque paid $100 for shares that would now be worth half a billion — an act that "simply shocks the conscience", it says

Tim Smith and Kabir Agarwal

4 min read

Cyrus Hodes, one of the cofounders of AI scaleup Stability AI, has filed a lawsuit against the company and Emad Mostaque, its CEO — and his fellow cofounder — claiming that his stake in the company was “fraudulently purchased” for well below market value. 

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Tim Smith

Tim Smith was news editor at Sifted. He covered deeptech and AI, and produced Startup Europe — The Sifted Podcast . Follow him on X and LinkedIn

Deeptech & AI

Deeptech & AI

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The people, companies and trends shaping European AI and deeptech.