Zoox yesterday had settled a legal suite with Tesla after admitting some new hires from the company had certain Tesla documents when they joined the self-driving startup which obviously caused a rift between both American companies.
Tesla legal team filed the law suit back in March 2019 against four former Tesla employees and Zoox itself alleging the employees stole proprietary information and trade secrets for developing warehousing, logistics and inventory control operations.
Zoox was then required to settle some undisclosed amount to Tesla and then undergo an audit to ensure that none of its employees had retained or are still using Tesla’s confidential information any longer.
“Zoox acknowledges that certain of its new hires from Tesla were in possession of Tesla documents pertaining to shipping, receiving, and warehouse procedures when they joined Zoox’s logistics team,” Zoox said.
With that said, this showed how fierce the race to developing the self-driving cars and lawsuits against former employees are common as firms strive to keep proprietary information in-house. This won’t be the first case of its kind.