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Rivian(RIVN.US) is facing trial for allegedly stealing Tesla(TSLA.US) trade secrets.

AInvestWednesday, Jul 24, 2024 3:50 am ET
1min read

According to an initial ruling by a judge in California, Rivian Automotive (RIVN.US) will face trial after the company was accused of encouraging employees to leak trade secrets from Tesla (TSLA.US).

A judge at the Superior Court of Santa Clara County, Theodore C. Zayner, temporarily rejected Rivian's motion to dismiss the lawsuit, saying Tesla provided sufficient evidence.

"Tesla's evidence shows that some Rivian employees were not thoroughly investigated and were not disciplined," the judge wrote in the temporary restraining order.

The final hearing is scheduled for Wednesday at the Santa Clara County Courthouse.

The legal battle began in 2020 when Tesla sued Rivian, accusing it of poaching employees and stealing trade secrets.

Though Rivian presented evidence that it investigated the theft of trade secrets, the judge found "it cannot be ultimately determined that the investigation was sufficient."

Rivian previously denied the accusations.

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