Electric car manufacturer Rivian Automotive is set to face trial over claims that it encouraged employees who left Elon Musk’s Tesla to steal trade secrets, based on a preliminary ruling from a California judge.
Judge Theodore C. Zayner of the Santa Clara County Superior Court has tentatively rejected Rivian’s request to dismiss the lawsuit, stating that Tesla provided enough evidence to proceed to trial.
The judge noted in his preliminary order that Tesla’s evidence suggests that Rivian did not thoroughly investigate or discipline certain employees involved.
A final hearing is scheduled for Wednesday in Santa Clara court.
The legal dispute started in 2020 when Tesla sued Rivian, alleging a troubling pattern of employee poaching and theft of confidential information.
Although Rivian presented evidence regarding its investigation into the alleged thefts, the judge concluded that it “does not conclusively prove that the investigation was sufficient.”
Rivian has previously denied the accusations.
NANCY MBAMALU
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