Faraday Future lawsuit claims former exec stole trade secrets


Faraday Future's executive exodus last fall was bad enough, but the departure of one exec may have been particularly troublesome. The electric car startup has filed a lawsuit alleging that former CFO Stefan Krause stole trade secrets and poached staff as he left to form a startup, Evelozcity. Reportedly, Krause was quietly working at both Faraday and Evelozcity for weeks before he was formally let go, and encouraged staff to not only leave, but take secret info on the way out. Faraday had announced Krause's exit in November over "possible violations of law," and now it's clear what those might be.

The company went on to accuse others of similar theft. Former vehicle manufacturing head Bill Strickland supposedly took "thousands" of documents, while staffers Christoph Kuttner and Sohel Merchant may have taken files as well. None of them have been named in the lawsuit, however.

Whether or not that's how things happened isn't clear. Faraday believed that Krause asked the company's human resources director to backdate his resignation to cover up his plans, but The Verge sources understand that Krause resigned in October. It also doesn't gel with Faraday's assertion that Krause was fired.

This isn't the first time Faraday has taken legal action against would-be rivals (it sent a cease-and-desist notice to Indi EV over similar allegations), but it may be the most serious. It also underscores the loyalty issues the company has had for months. Its financial uncertainty and shrinking ambitions haven't exactly inspired confidence, and a cash infusion in late 2017 came only after it had lost hundreds of employees. These kinds of lawsuits might be less likely going forward, but it's notable that they happened at all.

Source: The Verge

via Engadget RSS Feed "http://ift.tt/2rKNsUc"

Comments

Post a Comment

Popular posts from this blog

Evernote cuts staff as user growth stalls

Image
Note-taking app Evernote has fallen on hard times of late, culminating in its latest spate of job cuts impacting 15 percent of its workforce (54 employees). CEO Chris O' Neil -- an ex-Googler who took the reins in 2015 -- announced the firings at an all-hands meeting earlier today, reports TechCrunch . In a message on the Evernote blog , O' Neill admitted he'd set "incredibly aggressive goals" for the company in 2018. He continued: "Going forward, we are streamlining certain functions, like sales, so we can continue to speed up and scale others, like product development and engineering." The layoffs follow an exec exodus just weeks ago and the company's recent brand refresh (complete with a refined logo and wordmark). But critics are more concerned about its product, especially the free tier, which they claim lacks the perks to...
Read more

The best air conditioner

Image
By Liam McCabe This post was done in partnership with Wirecutter . When readers choose to buy Wirecutter's independently chosen editorial picks, it may earn affiliate commissions that support its work. Read the full article here . After six summers of researching, testing, and recommending window air conditioners, we've learned that quiet and affordable ACs make most people the happiest—and we think the LG LW8016ER will fit the bill in most rooms. This 8,000 Btu unit cools as efficiently and effectively as any model with an equal Btu rating, and runs at a lower volume and deeper pitch than others at this price. Little extra features like a fresh-air vent, two-axis fan blades, and a removable drain plug help set it apart, too. The LG LW8016ER is a top choice for an office or den, and some people will find it quiet enough for a bedroom, too. If our main pic...
Read more

We won't see a 'universal' vape oil cartridge anytime soon

Image
Pre-loaded cartridges of cannabis concentrate are currently among the most popular means of consumption, and for good reason. They're discreet to use and easy to handle, a far cry from the dark days of 2016 when we had to dribble hash oil or load wax into narrow-mouthed vape pens by hand. But, frustratingly, an ever increasing number of oil cartridge manufacturers employ one-off design standards so that their products won't work with those of their competitors, thereby locking customers into proprietary ecosystems. We've already seen this with nicotine vaporizers -- which has a seen a massive rise in "pod systems" in the last few years, each outfitted with a unique canister and battery built to be incompatible with those of their competition. Is it too late for the burgeoning cannabis industry to set a universal standard for their product designs? ...
Read more