Hyperloop One CEO Rob Lloyd sent out a letter to staff Friday announcing the settlement.
Hyperloop One — one of two startups trying to make Elon Musk’s dream of high-speed transportation a reality — has settled a lawsuit originally filed against the company by its ousted co-founder and CTO Brogan BamBrogan as well as three other former staffers, the company’s CEO announced in a letter to staff today.
Brogan BamBrogan filed the suit mere days after officially leaving the company and alleged the company’s executives Shervin Pishevar and Rob Lloyd as well as others were in breach of their fiduciary duty and accused them of “placing their own self-interests and other competing interests above those of Hyperloop One.”
Hyperloop One filed a counterclaim on July 19 claiming BamBrogan attempted to stage a coup and then steal employees to start a competing company when that didn’t work.
“Hyperloop One is pleased to announce that it has reached a confidential resolution of litigation with its former employees and looks forward to continuing to execute on its business plan,” a company spokesperson said in a statement.
We obtained the letter Hyperloop One CEO Rob Lloyd sent to his staff Friday evening:
I am pleased to inform you that we have resolved the lawsuit that was filed this summer against Hyperloop One by several of its former employees.
Lawsuits can be distracting for companies; they often halt momentum until they can be resolved. That didn’t happen here.
The resilience we have shown as a company since June has been nothing short of remarkable. Let’s just take a moment to reflect on just some of the accomplishments since.
On construction: We opened Metalworks, the world’s first hyperloop fabrication facility. This week we installed the first tubes on columns, a major step in our development loop. Today we have 65 full time team members working in Nevada at both Metalworks and our Test and Safety. We remain on track to have our Kitty Hawk moment in early 2017.
On partnerships: In Dubai, we announced the Port Jebel Ali feasibility study with DP World and we were selected for Dubai Future Accelerators. We then revealed our designs for the world’s first hyperloop to go from Dubai to Abu Dhabi in 12 minutes in coordination with RTA. And in Europe, we established working groups with the Dutch and Finnish governments for project feasibility.
On financing: We announced a $50 million investment led by DP World and hired Brent Callinicos as chief financial advisor.
This is an impressive list and none of this would have been possible without the entire team, from top to bottom. This is an amazing group to be a part of and we are on the cusp doing something extraordinary together.
Now let’s keep our focus on achieving our Q1 milestones and show the world the first working Hyperloop One system to the shape the future of transportation. The world is watching!
Regards and thank you,
Chief Executive Officer
This is developing…