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EV startup Canoo claims former execs joined the company just so they could steal its secrets — and launch a rival automaker

Dec 28, 2022, 05:03 IST
Business Insider
EV startup Canoo filed a 58-page lawsuit versus some of its former employees and their new company, Harbinger, alleging they stole intellectual property.Canoo
  • Electric vehicle maker Canoo is suing some of its former employees who launched a rival company.
  • Canoo claims the employees used Canoo trade secrets and IP for their new startup, Harbinger.
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Electric vehicle upstart Canoo is alleging some of its former executives only joined the firm in order to steal its trade secrets and launch a rival auto company.

In a 58-page lawsuit filed December 22 in the United States Central District Court of California, Canoo alleges several former employees stole intellectual property, violated trade secrets policies, breached employee separation agreements, and more in order to benefit their own, new EV startup, Harbinger.

Harbinger, a Los Angeles-based EV-maker that launched in September, is led by a team of former Canoo, Faraday Future, and QuantumScape executives. They include CEO John Harris, CTO Phillip Weicker, COO Will Eberts, and VP of structures and chassis Alexi Charbonneau, all of whom are named in the suit, along with Harbinger itself. Harbinger is targeting a burgeoning commercial EV market and introduced its plan to go after the medium-duty, Class 4 through 7 segments this fall.

The suit also names Canoo's former vice president of corporate legal, securities, and global strategy, Michael Fielkow (now Harbinger general counsel, secretary, and head of corporate development), along with several investors. Its 17 claims also include breach of confidentiality and fraud.

In the filing, Canoo claims Harbinger stole its EV technology, coined a "skateboard" — a flat platform underneath the body of an EV that includes its critical components like a battery and other parts — and is using that to develop its business model and form industry partnerships.

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"This is a case of corporate espionage by a group of serial grifters who infiltrated Canoo to steal its intellectual property (including its confidential information and trade secrets) and human capital," the filing states. Those executives "always intended to own and control their own EV company. And they were determined to do so without letting anything get in their way," it reads.

The filing alleges "Weicker, Charbonneau, and Eberts misappropriated vast amounts of Canoo's financial resources, business plans, human capital, trade secrets, and other intellectual property, and conspired with Harris (who was employed elsewhere) to form Harbinger using Canoo's stolen intellectual property."

A Canoo spokesperson told Insider in a statement Tuesday that, "As this lawsuit demonstrates, we take the protection of our IP seriously."

"Harbinger and its co-founders have always operated with the utmost integrity and have never engaged in any actions that would give rise to this meritless lawsuit," a Harbinger spokesperson told Insider in a statement. "While we cannot provide further comment at this time, we are confident in our position and will vigorously defend ourselves against any baseless allegations brought forth by Canoo."

Canoo is also alleging Harbinger strategically pulled from Canoo's workforce.

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"This is not a case where a couple of employees left a company to work for a competitor. This is far worse. Using Canoo's confidential information and trade secrets related to Canoo's employees, including their skills and training, Harbinger (through Eberts, Weicker, Charbonneau, and Harris) strategically recruited at least 33 of Canoo's employees to join Harbinger, making up approximately 66% of Harbinger's total workforce."

Several former Canoo employees have announced plans to join Harbinger on LinkedIn in recent months.

Harbinger has been making a splash since its launch, announcing business agreements and several big-name hires, including former Tesla manufacturing VP Gilbert Passin as chief production officer.

Canoo started production on its flagship electric van in November. Canoo experienced several months of production challenges and changed its plan to manufacture vehicles multiple times this year. It first planned to produce a range of 3,000 to 6,000 vehicles, but later said it would target 15 vehicles by the end of 2022. The company is also running low on cash, its executives have noted in recent earnings calls.

In recent months, however, Canoo has landed deals with the US Army, NASA, Walmart, and has signed agreements with fleet-leasing provider Zeeba and work-van rental company Kingbee.

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Do you have an option or tip to share? Contact this reporter at astjohn@insider.com or on Signal at 313-570-6709.

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