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Stability AI sued by co-founder claiming deception over company stake sale

  • Co-founder sold 15% stake in Stability AI to CEO for $100 before $101M funding round at $1B valuation
  • Lawsuit alleges CEO tricked co-founder into thinking company was worthless before releasing successful image generator
  • Co-founder accuses CEO of embezzlement, destroying evidence, and cheating investors in prior ventures
  • Lawsuit draws parallels to claim by another ex-co-founder of reneged 10% stake grant by CEO
  • Stability AI also faces separate lawsuit from Getty Images over alleged copyright infringement
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