SandboxAQ, a Silicon Valley startup, responds to a lawsuit filed by a former executive.
SandboxAQ, a high-profile technology startup that emerged from Google’s moonshot program, is pushing back strongly against a lawsuit filed by a former senior executive. The company claims the lawsuit is based on false statements and is an attempt to pressure the company into a settlement.
The legal dispute began last month when Robert Bender, a former executive at SandboxAQ, filed a wrongful termination lawsuit. The case quickly drew attention due to serious allegations made against the company and its chief executive officer, Jack Hidary. Some of the claims were so sensitive that Bender himself chose to black out parts of his own filing before it became public.
On Friday, SandboxAQ responded with a sharply worded legal filing. The company’s lawyers described Bender as a “serial liar” and said the lawsuit was filed for improper reasons. They accused him of trying to use the court system to damage the company’s reputation and extract money.
A Rare Look Inside a Secretive Company
The case offers a rare glimpse into internal disputes at a Silicon Valley startup. Many tech companies rely on private arbitration clauses, which often keep employee disputes out of public view. In this situation, however, details of the conflict have surfaced through court filings.
Bender’s lawsuit was filed in mid-December. According to the complaint, he worked as chief of staff to Jack Hidary from August 2024 until July 2025. Bender claims he was fired after raising concerns about several alleged incidents involving the CEO.
Some of these alleged incidents, according to the lawsuit, involved sexual behavior during business travel. Others involved what Bender described as misleading financial information shared with potential investors. The most graphic details were removed from the public version of the lawsuit, which is unusual since defendants usually request such redactions.
Bender’s lawyers later explained that the redacted sections describe sexual encounters and physical details of people who are not part of the lawsuit. These individuals are not being accused of wrongdoing. The reason for hiding this information is unclear, though such actions can sometimes be intended to protect privacy or apply pressure during legal negotiations.
SandboxAQ Denies All Claims
SandboxAQ strongly rejects every allegation made by Bender. The company’s legal response was filed by Orin Snyder, a well-known attorney at the law firm Gibson Dunn.
Snyder said the case is completely fabricated and accused Bender of inventing claims to protect himself from the consequences of his own actions. The company denies that any corporate funds were misused or that investors were misled.
According to SandboxAQ’s response, the company did not provide false financial data during fundraising or stock sales. It also denies that Hidary used company resources for personal activities. The company claims Bender made these accusations to create leverage and avoid accountability.
Claims About Spending and Stock Sales
In the portions of the lawsuit that were not redacted, Bender alleges that Hidary used company money and investor funds to arrange travel and entertainment involving female companions. In one attached text message included as evidence, Bender refers to prostitutes.
Bender also claims that Hidary sold tens of millions of dollars’ worth of company stock at a premium price. He alleges this was done using financial figures that were more optimistic than the numbers shared internally. According to the lawsuit, revenue figures presented to investors were much higher than those shown to the board.
SandboxAQ denies these claims entirely. The company says no fraudulent disclosures were made and no corporate assets were misused. Its lawyers argue that the allegations are designed to damage the CEO and the company’s standing.
Bender Claims Retaliation
Bender, meanwhile, says the company has tried to ruin his reputation. His complaint states that he only filed the lawsuit after what he describes as a deliberate effort by SandboxAQ to discredit him following his termination.
He claims the company launched a campaign to damage his name, which left him with no choice but to pursue legal action. SandboxAQ denies this and says Bender is misrepresenting events.
Links to Previous Reporting
Some of Bender’s claims reflect reporting published last year by The Information. That report suggested that Hidary used company jets to fly women he was dating and that SandboxAQ’s revenue was far lower than its projections.
Bender references the article in his lawsuit but says he was not a source for the story. SandboxAQ disputes that claim and says Bender did provide information to reporters, despite denying it under oath.
High-Profile Investors Remain Confident
Despite the controversy, SandboxAQ continues to attract major financial backing. The company was spun out of Alphabet in March 2022 and is led by Hidary, who previously ran the project at Google. He is also known for his involvement with the X Prize organization.
The company has a long list of influential investors. These include former Google CEO Eric Schmidt, who serves as chairman, Salesforce CEO Marc Benioff, venture capitalist Jim Breyer, and hedge fund founder Ray Dalio.
In April, SandboxAQ raised more than $450 million in a Series E funding round. Investors included Dalio, Horizon Kinetics, BNP Paribas, Google, and Nvidia. The company also completed a $90 million secondary stock sale.
SandboxAQ says it has now raised a total of $1 billion and is valued at around $5.75 billion, according to industry estimates.
What Comes Next
The truth of the allegations will ultimately be decided in court. Until then, the case highlights how disputes between executives and startups can quickly turn into public battles, especially when large sums of money and powerful reputations are involved.
For now, SandboxAQ is standing firm, while Bender maintains that he was punished for speaking up. The outcome could have lasting effects on both parties and on how similar disputes are handled in the tech industry going forward.
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