TL;DR
A former SandboxAQ chief of staff, Robert Bender, filed a wrongful termination suit alleging sexual misconduct and misleading financial disclosures tied to CEO Jack Hidary. SandboxAQ denies the claims, calls the complaint fabricated and extortionate, and has filed a forceful legal response.
What happened
In mid-December a former executive, Robert Bender, brought a wrongful termination complaint against SandboxAQ that contains redacted allegations relating to sexual encounters and claims about misleading investor information. Bender — who served as chief of staff to CEO Jack Hidary from August 2024 through July 2025, according to the filing — says he was dismissed after raising concerns. The publicly visible portions of the complaint allege Hidary used company resources and investor funds to transport and entertain female companions, and that investors were shown revenue figures higher than those provided to the board; Bender says the board numbers were about 50% lower than investor-facing presentations. SandboxAQ’s lawyers, led by Gibson Dunn partner Orin Snyder, replied that the complaint is fabricated and describes the plaintiff as a “serial liar” pursuing opportunistic claims. The filing echoes reporting published earlier by The Information; Bender denies being a source for that article while the company alleges he was. The suit and the company response are now in court.
Why it matters
- Allegations touch on corporate governance, potential misuse of corporate resources and investor disclosures at a high-profile AI/quantum startup.
- Investor confidence could be affected because SandboxAQ has prominent backers and recently completed a large funding round and secondary sale.
- The case highlights how litigation can expose internal disputes that are often kept private by arbitration clauses in tech employment contracts.
- Outcomes could influence how startups handle executive conduct, disclosure practices and internal reporting of concerns.
Key facts
- Plaintiff: Robert Bender filed the wrongful termination suit in mid-December.
- Employment: Bender served as chief of staff to Jack Hidary from August 2024 through July 2025, per the complaint.
- Main allegations (as visible in the filing): claims of sexual encounters involving non-party individuals, alleged misuse of company resources to transport and entertain female companions, and allegedly misleading revenue figures presented to investors.
- Redactions: The plaintiff redacted portions of the complaint that he said describe sexual encounters and the physical condition of non-party individuals.
- Financial allegations: Bender contends Hidary sold tens of millions in stock at a premium based on investor presentations that overstated revenue versus what the board was shown.
- Company response: SandboxAQ’s lawyers characterize the complaint as fabricated and extortionate; Orin Snyder of Gibson Dunn filed the company’s answer.
- Reported echoes: The suit contains allegations similar to a July report by The Information about Hidary’s conduct and the company’s revenue levels; Bender denies being the source while SandboxAQ claims he was.
- Corporate background: SandboxAQ began as an Alphabet moonshot unit, spun out in March 2022 with Jack Hidary as CEO.
- Investors and funding: Notable backers include Eric Schmidt, Marc Benioff, Jim Breyer and Ray Dalio. In April, the company raised over $450 million in a Series E and announced a $90 million secondary sale. The company says it has raised $1 billion total; PitchBook estimated its valuation at $5.75 billion.
What to watch next
- not confirmed in the source: whether additional redacted allegations will be unsealed or disclosed during litigation.
- not confirmed in the source: whether the case will proceed to a jury trial or be resolved through settlement or arbitration.
- not confirmed in the source: whether investors or the board will launch an independent investigation into the alleged conduct and disclosure practices.
Quick glossary
- Wrongful termination: A legal claim that an employee was fired in violation of employment law, contract terms, or public policy.
- Redaction: The process of obscuring or removing portions of a document before public release, often to protect privacy or sensitive information.
- Secondary sale: A transaction where existing shareholders sell shares to new buyers, allowing liquidity without a company issuing new shares.
- Tender offer: A public bid to buy shares from a company's shareholders, often at a premium to the market price; used in various corporate transactions.
Reader FAQ
Who filed the lawsuit and against whom?
Robert Bender, a former chief of staff to SandboxAQ CEO Jack Hidary, filed a wrongful termination suit against the company.
What are the main allegations in the complaint?
Visible portions allege sexual encounters involving non-party individuals, misuse of company resources to transport and entertain female companions, and allegedly misleading revenue figures shown to investors versus the board.
How has SandboxAQ responded?
SandboxAQ has denied the allegations, calling the complaint fabricated and accusing the plaintiff of attempting extortion; the company’s response was filed by Gibson Dunn partner Orin Snyder.
Is there confirmation of an internal investigation or board action?
not confirmed in the source
A former SandboxAQ executive filed a wrongful termination suit last month filled with such scandalous allegations against the company’s famed CEO, Jack Hidary, that plaintiff himself redacted the most salacious details. …
Sources
- Google moonshot spinout SandboxAQ claims an ex-exec is attempting ‘extortion’
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