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Rivian to face trial in Tesla trade secrets theft case, judge says
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Rivian to face trial in Tesla trade secrets theft case, judge says
Jul 23, 2024 9:01 PM

July 23 (Reuters) - Electric car maker Rivian Automotive ( RIVN )

will go on trial over allegations that it encouraged

its employees who defected from Elon Musk's Tesla to

steal trade secrets, according to a tentative ruling issued by a

California judge.

Judge Theodore C. Zayner of the Santa Clara County Superior

Court tentatively denied Rivian's motion to dismiss the lawsuit,

stating Tesla presented sufficient evidence for a trial.

"Tesla's evidence establishes that some Rivian employees

were less thoroughly investigated and not disciplined," the

judge wrote in the tentative order.

A final hearing is set for Wednesday in Santa Clara court.

The legal battle began in 2020 when Tesla filed a lawsuit

against Rivian accusing it of an alarming pattern of poaching

employees and misappropriating confidential information.

While Rivian presented evidence of its investigation into

the trade thefts case, the judge found it "does not conclusively

establish that an investigation was adequate."

Rivian has previously denied the allegations.

Tesla and Rivian did not immediately respond to Reuters'

request for comment.

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