Cybereason CEO leaves after months of boardroom blowups

Complaint alleges 13 funding proposals foundered amid battle for control

Updated Eric Gan is no longer CEO of AI security biz Cybereason after what appears to have been a protracted and unpleasant fight with investors, including the SoftBank Vision Fund and Liberty Strategic Capital.

Gan, a former SoftBank executive, came aboard as chief exec in April 2023 after the outfit's last funding round. By November that year he informed the upstart's board it needed a further $100 million cash injection ASAP, as without the extra money auditors would not sign off on the company's financial reports.

According to a lawsuit [PDF] filed by Gan in Delaware last month against Cybereason, Softbank, Liberty Strategic Capital, and others, he put several funding proposals to Cybereason's board of directors, and warned that without more money the biz could be forced into bankruptcy. The court filing also lists ex-US Treasury Secretary Steven Mnuchin, who founded Liberty Strategic, as a defendant.

Fresh funding remained elusive as Cybereason’s board could not agree on the company’s future structure.

The board did debate whether Cybereason should acquire rival security vendor Trustwave or merge with it, and decided on the latter. The deal was announced in November 2024.

But debate about funding and company structure remained unresolved, amid what Gan's complaint alleges was “intentional obstruction” and heated boardroom battles.

Gan’s filing alleges the board knocked back 13 financing proposals between July 2024 and February 2025, among them one that would have left Liberty Financial and the SoftBank Vision fund in control of Cybereason.

The document states that two members of Cybereason’s seven-person board resigned before a January 27 meeting and privately praised Gan’s efforts while criticizing the behavior of other directors. A further claim alleges a director appointed by SoftBank has refused to attend meetings due to his concerns about the behavior of other board members.

Board meetings were therefore convened with just four directors present and became deadlocked. Two directors – Liberty's Mnuchin, and Daniela Llobet of the SoftBank Vision Fund – apparently said they would veto funding proposals put to the board.

Gan’s complaint alleges SoftBank Vision Fund and Liberty Financial ultimately breached their fiduciary duties. He seeks appointment of a custodian to break the current deadlock, a declaration that duties were breached, damages, and costs.

If all of the above sounds like it would make a CEO’s job hell, Gan seems to agree as we note he is no longer listed as CEO on the biz's website, and reportedly quit.

We’ve asked Trustwave, Cybereason, SoftBank Vision Fund, and Liberty Financial for comment. At the time of writing none had anything to say. ®

Updated to add on March 11

Cybereason looks like it could hang on for a little while longer after securing a cash injection of $120 million from SoftBank and Liberty, following the aforementioned ousting of the CEO.

"We are thrilled to have key investors SoftBank Corp, SoftBank Vision Fund 2, and Liberty Strategic Capital leading this investment round. This funding is a testament to the strength of our technology, and the trust our partners place in Cybereason," said new chief exec Manish Narula, who was previously CFO.

"With this capital infusion, Cybereason’s Chief Administrative Officer and General Counsel, Gregory Puff, along with the entire Cybereason team, will continue to push the boundaries of innovation in cybersecurity technology and services, expanding our reach in critical markets."

Other investors are welcome to add to the funding pot, the biz said.