A federal jury in Seattle on Thursday reportedly instructed Boeing Co BA to give electric aircraft startup Zunum Aero $72 million for allegedly stealing its trade secrets.
What Happened: The jury awarded $72 million to Zunum after agreeing that Boeing copied the startup’s tech and drove it out of the market after investing in the company, Reuters reported. Boeing, however, plans to challenge the judgment.
“Boeing respectfully disagrees with the jury’s verdict, which is not supported by the law or the facts,” the company said in a statement to the news agency.
At least part of the award could be tripled under trade secrets law, the report added.
Claims And Counterclaims: Zunum was founded in 2013 with the aim of manufacturing electric short-haul flights. Boeing’s venture capital firm invested $5 million into the Seattle area startup in 2017.
The company claimed in its 2020 lawsuit that Boeing developed its hybrid commuter aircraft with Zunum’s trade secrets. While the company started selling its aircraft in 2022, it was forced to halt due to Boeing-caused capital starvation, the company alleged in its lawsuit, as per Reuters.
Boeing, however, denied these allegations and told the court that Zunum lost investors after aiming beyond its reach.
Why It Matters: In January, a door plug panel flew off an Alaska Airlines plane manufactured by Boeing soon after take off. The incident forced the pilots to make an emergency landing. Since then, Boeing has been at the receiving end of severe regulatory scrutiny including from the Justice Department, sending the stock on a downward slump.
Boeing stock is down 29.45% year-to-date, according to data from Benzinga Pro.
Check out more of Benzinga’s Future Of Mobility coverage by following this link.
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