Electric-vehicle maker Canoo, which is supplying Walmart Inc. with several thousand delivery vans, is suing a group of former employees for stealing trade secrets to create a rival business.
Canoo filed the lawsuit naming Harbinger Motors Inc. and several of its executives on Dec. 22 in U.S. District Court for the Central District of California, Western Division.
The complaint alleges that former Canoo employees William Eberts, Phillip Weicker and Alexi Charbonneau "always intended to control the intellectual property they developed (and steal Canoo's confidential information) once they left the company."
"In all, Weicker, Charbonneau and Eberts misappropriated vast amounts of Canoo's financial resources, business plans, human capital, trade secrets and other intellectual property," Canoo said in its complaint.
Canoo also alleges that the three employees conspired with another defendant, John Henry Harris, who had previously worked with them at another company, to form Harbinger using the stolen intellectual property, according to court documents.
Further, Canoo claims the four men recruited at least 33 Canoo employees to join Harbinger. These employees make up about 66% of Harbinger's workforce, court records state.
As a result of the defendants' actions, Canoo said in the complaint, "Canoo has suffered, and will continue to suffer, actual damages, including, but not limited to, loss of valuable business, loss of profits and future profits, and loss of goodwill, in an amount to be proven at trial."
Canoo also claims the defendants were "unjustly enriched" as a result of the theft of Canoo's trade secrets.
"The amount of this enrichment cannot presently be ascertained," the complaint states.
Harbinger did not immediately return a request for comment on the lawsuit.
Harbinger's website names Eberts, Weicker and Harris as the company's co-founders. Weicker currently serves as Harbinger's chief technology officer and Eberts as its chief operating officer.
Charbonneau is Harbinger's vice president of chassis and structures engineering.
Los Angeles-based Harbinger makes medium-duty commercial electric vehicles, according to its website.
Canoo is also based in the Los Angeles area, but has operations in Bentonville where it plans to locate its headquarters.
The company said last month that it had started producing vehicles, including its boxy Lifestyle Delivery Vehicle and pod-like Lifestyle Vehicle. The first 15 are earmarked for the National Aeronautics and Space Administration, Walmart Inc. and other strategic partners.
A third party is making the initial vehicles, Canoo said. However, production will shift to Canoo's new Oklahoma City manufacturing plant in the first half of 2023.
Walmart said in July that it would buy 4,500 of Canoo's electric delivery vans with an option for up to 10,000. Neither company revealed the total value of the agreement, but the Bentonville-based retailer's deal with Canoo also gives Walmart an option to buy 20% of Canoo's stock.
Canoo's shares rose 14%, or 15 cents, to close Thursday at $1.22 on the Nasdaq. The shares have traded between $1.02 and $8.28 over the past year.
The lawsuit is Canoo Technologies Inc. v. Harbinger Motors Inc. et al.