Electric car maker Rivian is set to go on trial over allegations that it encouraged former Tesla employees to steal trade secrets. This development follows a tentative ruling by Judge Theodore C. Zayner of the Santa Clara County Superior Court, who denied Rivian’s motion to dismiss the lawsuit, asserting that Tesla presented sufficient evidence for a trial.
Tesla filed the lawsuit in 2020, accusing Rivian of a pattern of poaching employees and misappropriating confidential information. Despite Rivian’s claims of investigating the alleged trade thefts, Judge Zayner found the evidence presented by Rivian insufficient to prove the investigation was adequate.
“Tesla’s evidence establishes that some Rivian employees were less thoroughly investigated and not disciplined,” the judge wrote in the tentative order. This assertion highlights the gaps in Rivian’s internal measures to address the allegations.
The final hearing is scheduled for Wednesday in Santa Clara court, where both parties will present their arguments. Rivian has consistently denied the allegations, maintaining its stance against any wrongdoing.
This legal battle underscores the intense competition and high stakes within the electric vehicle industry, where trade secrets and employee movements are closely monitored and fiercely contested.
