Self-driving start-up, Zoox has in a statement admitted that four of its employees indeed took confidential documents from their former employer, Tesla. This came after Zoox decided on settling the issue with Tesla out of court.
“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,” the startup said in a statement to Reuters.
Tesla had filed a lawsuit in March 2019 against Zoox and four former employees, alleging the employees stole proprietary information and trade secrets for developing warehousing, logistics and inventory control operations. The information also contains insights about the payment structure at Tesla.
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Tesla claims that the information had helped Zoox “leapfrog past years of work needed to develop and run its own warehousing, logistics, and inventory control operations”. The electric automaker labels it as a “blatant and intentional” act.
Zoox to pay an undisclosed amount among other requirements
The settlement requires Zoox to pay an undisclosed amount of money to Tesla. Zoox also will perform an audit to “ensure that no Zoox employees have retained or are using Tesla confidential information”.
The company says it “regrets the actions of those employees”. Zoox will also “conduct enhanced confidentiality training” to ensure that its employees “respect their confidentiality obligations.”
Two employees sent the incriminating information to their personal emails from their work emails while they were with Tesla. Zoox and the four employees never officially disputed Tesla’s claims in court.
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