11:22 AM EDT, 03/10/2026 (MT Newswires) -- (Updates with Archer Aviation's ( ACHR ) reply in the fifth paragraph.)

Archer Aviation ( ACHR ) accused rival electric air-taxi maker Joby Aviation ( JOBY ) of defrauding the US government and concealing close ties to China, in a countersuit filed Monday in US federal court, Reuters reported Tuesday.

"Joby and/or its agents fraudulently misclassified thousands of pounds of Chinese-origin aircraft materials as consumer goods...in an apparent effort to evade US tariffs and foreign-influence oversight," Archer reportedly alleged.

Archer also alleged that Joby received grants and financial support from the Chinese government while failing to disclose those ties, according to the report.

Joby's attorney, Alex Spiro, told Reuters that the claims were "nonsense," and that Archer was resorting to unfounded theories amid ongoing legal and business challenges.

"While Joby promotes a made-in-America, vertical integration narrative and benefits from US taxpayer-backed programs, our filing today lays out detailed allegations exposing Joby's longstanding and extensive ties to China," Archer Aviation's ( ACHR ) Chief Legal and Strategy Officer Eric Lentell told MT Newswires, adding that the company filed this action to hold Joby accountable and protect fair competition.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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