The company's lawyers on Tuesday called the lawsuit "unfortunate and delusional," dismissed the claims as "pure nonsense," and said the lawsuit was result of a failed coup among the plaintiffs.
"Hyperloop is on track, its board and team are united and today's bogus lawsuit will have no impact on its goal of becoming the first company to bring the Hyperloop to the world," attorney Orin Snyder said in the statement.
Rival start-up Hyperloop Transportation Technologies, whose funding is undisclosed, also issued a statement to quell fears that the lawsuit could have a chilling impact on fundraising and development of the technology.
"Hyperloop Transportation Technologies is in no way affected by developments at Hyperloop One, we wish them a speedy resolve to their recent issues," said Hyperloop Transportation Technologies CEO Dirk Ahlborn.
Correction: An earlier version of this story misstated the distance from Los Angeles to San Francisco.