Hyperloop Resolves Bitter Lawsuit Filed by Former Employees

  • Plaintiffs say they’re building a rival transportation firm
  • Suit’s allegations included defamation, nepotism, noose use

Futuristic transportation startup Hyperloop Technologies Inc. said it resolved a lawsuit brought by former employees, who in turn said they’ve started a competing company.

The June lawsuit’s allegations included defamation, breach of fiduciary duty, nepotism, and even a stray noose or rope left on one employee’s chair. Details of the settlement were not disclosed.

"Lawsuits can be distracting for companies; they often halt momentum until they can be resolved," Hyperloop Chief Executive Officer Rob Lloyd wrote in a memo to employees obtained by Bloomberg News. "That didn’t happen here."

“My clients are pleased to announce that they have reached a confidential resolution of litigation with their former employer and look forward to moving on with their future plans,” Justin Berger, an attorney for the plaintiffs including ex-executives Brogan BamBrogran, a former SpaceX engineer, and David Pendergast, a lawyer.

BamBrogran, Pendergast and other former employees are launching a similar company. "We are planning to build rad shit with rad people, starting with our take on Hyperloop," they said in a statement e-mailed to Bloomberg. "More to come in the near future.”

Hyperloop declined to comment on the former employees’ plans. The company had accused them of trying to start a competing firm in a July countersuit, saying the group had first attempted to seize control of the company. When that failed, the former employees launched "Plan B."

Hyperloop, inspired by an Elon Musk vision, has become the term for a train-like transportation system that moves pods of people or goods through large tubes, at airplane-like speeds.

    Before it's here, it's on the Bloomberg Terminal.