Google moonshot spinout SandboxAQ claims an ex-exec is attempting ‘extortion’

Google moonshot spinout SandboxAQ claims an ex-exec is attempting ‘extortion’

A former executive at SandboxAQ has launched a wrongful termination lawsuit, alleging serious misconduct by CEO Jack Hidary. The lawsuit, which includes redacted details deemed too scandalous by the plaintiff, has prompted a fierce response from the company, which labeled the claims as false and malicious. Robert Bender, who served as Chief of Staff to Hidary from August 2024 to July 2025, asserts in his complaint that he was wrongfully terminated after voicing concerns about alleged inappropriate incidents, including claims of sexual encounters and misleading financial representations to investors. SandboxAQ, a startup focused on AI quantum computing and spun out from Alphabet in March 2022, firmly denies these allegations, with attorney Orin Snyder calling the lawsuit a fabrication aimed at extorting the company. The case has attracted significant attention due to the high-profile nature of SandboxAQ and its investors, including Eric Schmidt, Marc Benioff, and Ray Dalio. Bender’s attorneys have referenced redacted sections of the lawsuit that reportedly detail observed behaviors of non-party individuals during business trips, raising questions about the motivations behind these omissions. In addition to the allegations of misconduct, Bender claims that Hidary misused company resources and investor funds to entertain female companions, and he accuses the CEO of providing misleading revenue figures to investors. SandboxAQ's legal team has strongly refuted these claims, asserting that no fraudulent disclosures were made and that Bender's allegations are an attempt to evade accountability for his own actions. This lawsuit echoes prior investigative reports that suggested misconduct at SandboxAQ, though Bender denies being a source for those claims. Despite the controversy, the company has successfully attracted significant funding, raising over $450 million in a Series E round last year and claiming a total valuation of $5.75 billion. As this legal battle unfolds, all eyes are on the courtroom and the potential implications for the company and its leadership.

Sources : TechCrunch

Published On : Jan 10, 2026, 24:45

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