Factory and Cognition dispute adviser’s move between rivals

Factory CEO Matan Grinberg accused former adviser Chris Degnan of putting confidential company information at risk through discussions with rival Cognition, while Degnan and Cognition denied that any information was sought or shared. The dispute became public as Degnan joined Cognition as chief revenue officer, prompting conflicting accounts of how his Factory role ended and when he began speaking with the rival company. Grinberg said he ended Degnan’s advisory role after learning that Degnan had been in contact with Cognition executives while advising Factory on confidential matters. Grinberg alleged the conversations overlapped with Degnan’s participation in Factory board meetings and leadership discussions, and said Factory did not know how much information, if any, Degnan may have shared. Degnan said he resigned from Factory, told Grinberg he was joining Cognition and did not disclose Factory information. He said Cognition had never asked him for it. The accounts also differ on timing: Grinberg said the discussions were ongoing while Degnan advised Factory, while Degnan said his last Factory board meeting was weeks before his first conversation with Cognition.