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Home / News / Business News / Tesla and Rivian reach 'conditional' settlement in trade secrets lawsuit
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Tesla and Rivian reach 'conditional' settlement in trade secrets lawsuit
The lawsuit was initially filed by Tesla in 2020

Tesla and Rivian reach 'conditional' settlement in trade secrets lawsuit

By Dwaipayan Roy
Nov 24, 2024
10:07 am

What's the story

Tesla and Rivian have reached a "conditional" settlement in their ongoing trade secrets lawsuit, Bloomberg reported.

The electric vehicle (EV) giant informed a California judge about the development, adding that it plans to request the dismissal of the case by December 24.

The lawsuit, initially filed by Tesla in 2020, was scheduled for trial in March next year.

Allegations

Tesla accused Rivian of poaching employees, stealing trade secrets

The lawsuit originated from Tesla's claims that Rivian engaged in an "alarming pattern" of poaching its employees.

Tesla alleged that these people were persuaded to take proprietary information with them when they left.

This purported tactic by Rivian was viewed as a major threat to Tesla's competitive advantage in the EV space.

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Counterclaim

Rivian's response to Tesla's allegations

In response to Tesla's allegations, Rivian had sought to have the lawsuit dismissed.

The company argued that the legal action was an "improper and malicious attempt to slow" its progress.

Further, Rivian suggested that this move by the Elon Musk-led company could potentially deter its employees from considering a switch to Rivian.

Done!
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