Hyperloop One sues its cofounder, claiming he was part of a 'Gang of Four'
In the new claim, Hyperloop One alleges that its cofounder Brogan BamBrogan was part of a "Gang of Four" attempting to manufacture and incite conflict "in a transparent attempt to seize control of the company."
The other alleged members of the "Gang of Four" include Hyperloop One employees Knut Sauer, David Pendergast, and William Mulholland.
"The Gang of Four sowed the seeds of their illegal conspiracy after increasingly disruptive misconduct, after learning they would be terminated, or learning they would be passed over for advancement," the lawsuit filed Tuesday in the Superior Court of Los Angeles states. "Thus, these conspirators had every incentive to either overthrow the Company's leadership, or leave and inflict maximum damage to pave the way for their own competing Hyperloop venture."
The lawsuit comes in retaliation after cofounder Brogan BamBrogan filed a lawsuit against the company on July 12, alleging that the company had misused its funds and mistreated employees.
In his own suit, BamBrogan asserted that the former general counsel of the company, Afshin Pishevar, allegedly placed a hangman's noose on his desk after BamBrogan and 10 other employees complained to management. The new lawsuit claims the "workplace prank" was simply a lasso placed next to the cofounders trademark cowboy hat because BamBrogan was "acting like a cowboy".
"Today's lawsuit demonstrates that these four men staged a failed coup to try to take over Hyperloop One and then conspired to start their own competing company," said Orin Snyder, Hyperloop's attorney and a partner at Gibson Dunn, in an e-mailed statement to CNBC. "Hyperloop One's board and management are unified in standing up to this illicit attack on the company, and today the company is stronger than ever in its mission to bring the Hyperloop to the world."
BamBrogan was the technical brains of Hyperloop One, which hopes to transport people around the world much more quickly than trains or cars by firing them along a tube. The idea originally came from SpaceX and Tesla founder Elon Musk, but he's letting other companies actually develop the technology.
Now the company believes that BamBrogan was going to leave to start his own competitor: Hyperloop Two.
"Today's lawsuit demonstrates that these four men staged a failed coup to try to take over Hyperloop One and then conspired to start their own competing company," said Orin Snyder, Hyperloop's attorney and a partner at Gibson Dunn, in an e-mailed statement to CNBC. "Hyperloop One's board and management are unified in standing up to this illicit attack on the company, and today the company is stronger than ever in its mission to bring the Hyperloop to the world."
Since BamBrogan's lawsuit, cofounder and chairman Shervin Pishevar and vice chairman Joseph Lonsdale have reduced their voting shares to 40% combined, down from 78% combined.