Jul. 17, 2023
Man says he cofounded Stability AI, tricked into selling out for $100
The plaintiff, Cyrus Hodes, alleges that Mostaque told him the London based company was “essentially worthless” in October 2021 and May 2022 as a means of purchasing his 15% share with the knowledge that a $101 million investment was imminent.
Stability AI Inc. CEO Mohammad Mostaque was sued in federal court in San Francisco by a man who says he is a co-founder of the company and was fraudulently induced to sell his share for $100 when it could soon be worth more than $500 million.
It is the second such lawsuit, but the previous one was withdrawn. A spokesperson for Stability AI said Friday, “The suit is without merit and we will aggressively defend our position.”
For only $95 a month (the price of 2 article purchases)
Receive unlimited article access and full access to our archives,
Daily Appellate Report, award winning columns, and our
Verdicts and Settlements.
Or
$895, but save $100 when you subscribe today… Just $795 for the first year!
Or access this article for $45
(Purchase provides 7-day access to this article. Printing, posting or downloading is not allowed.)
Already a subscriber?
Sign In