Palantir Poaching Suit Called 'Scare' Tactic by Ex-Employees

Palantir Technologies Inc. is facing pushback in its legal battle with Percepta AI, an AI startup co-founded by two of its former employees. The company has accused the startup of poaching talent and stealing trade secrets, but Percepta's legal team disputes the claims, calling them an attempt to 'scare others away from leaving' and 'destroy Percepta before it can grow further' according to legal filings.

The lawsuit, filed in October in the Southern District of New York, names Percepta co-founders Hirsh Jain and Radha Jain, along with former Palantir employee Joanna Cohen, as defendants. Palantir alleges that the trio violated non-competition and non-solicitation agreements by forming a 'copycat' business and using confidential information. The company also claims that Cohen sent herself confidential documents before leaving to work at Percepta as reported by The Wall Street Journal.

Percepta and its lawyers have denied the allegations, arguing that Palantir's claims are baseless. They assert that the non-compete clauses in the employment contracts are overly broad and unenforceable. The startup maintains that the materials Palantir claims were stolen are irrelevant and outdated according to Bloomberg analysis.

Why Did This Happen?

Palantir has long been known for its restrictive employment agreements, which many former employees sign when joining the company. These agreements typically include non-competition and non-solicitation clauses. Percepta's legal team argues that the interpretation of these clauses by Palantir is being used to suppress competition rather than to protect legitimate business interests as CNBC reports.

The lawsuit includes an email allegedly sent by Hirsh Jain in which he joked about 'pillage the best devs at Palantir.' Palantir has cited this as evidence of intent to poach employees. However, Percepta's lawyers counter that the individuals named in the email were not approached for a job at the startup, with the exception of one person who decided to leave Palantir on their own according to CNBC coverage.

How Did Markets React?

While the legal battle plays out in court, the broader market for enterprise AI remains active. The global AI apps market is projected to grow at a compound annual growth rate of 38.7% from 2025 to 2030. North America accounted for 29.48% of the market in 2024, with the U.S. leading in AI adoption and investment according to Grand View Research.

C3.ai, another enterprise AI software provider, has also faced its own challenges. The company reported fiscal Q2 revenue of $75.1 million in January 2026, exceeding expectations. However, the stock price has declined by more than 50% in 2025, and its founder, Thomas Siebel, recently sold over $7.6 million in shares as Yahoo Finance reports.

What Are Analysts Watching Next?

Legal experts are paying close attention to how the court interprets the non-compete clauses in the case. If a judge rules that these clauses are unenforceable, it could set a precedent that affects other companies using similar contracts according to The Wall Street Journal.

Percepta's legal team is also highlighting the broader implications of the case. They argue that if Palantir's interpretation of its non-compete agreements is accepted, it could effectively prevent Radha Jain and Cohen from working in any AI company for 12 months according to Bloomberg analysis.

Palantir has not commented publicly on the allegations, but the case is already part of a larger trend of legal disputes over trade secrets and anticompetitive practices in the AI industry. Companies like Elon Musk's xAI and data-labeling firm Scale AI have also filed lawsuits in recent months as reported by The Wall Street Journal.