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Judge denies restraining order in Hyperloop One case

Hyperloop tubes are displayed during the first test of the propulsion system at the Hyperloop One Test and Safety site on May 11, 2016 in North Las Vegas, Nevada.
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Hyperloop tubes are displayed during the first test of the propulsion system at the Hyperloop One Test and Safety site on May 11, 2016 in North Las Vegas, Nevada.

A judge denied a request for a restraining order from a former employee who filed an explosive lawsuit against start-up Hyperloop One.

Brogan BamBrogan had requested the order against Afshin Pishevar, Hyperloop One's former chief legal officer, who, among other things, allegedly "strolled through Hyperloop One's office and placed a hangman's noose on BamBrogan's chair," according to a legal complaint.

A judge did not grant the restraining order for BamBrogan, a co-founder of the transportation technology company, who has said he was forced to resign and charges wrongful termination, breach of contract, defamation and assault, among other accusations. BamBrogan's attorney Justin Berger said that the noose is a manifestation of deeper problems in the company and that it could be characterized as an "explicit threat."

But now that the pair no longer work together, Judge Carol Boas Goodson said she didn't see the need for the order.

The noose incident was one of the nastier details in a separate lawsuit that claims the company's leaders, including Afshin's brother and Hyperloop One co-founder, Shervin Pishevar, breached their fiduciary duty and conspired "to augment their personal brands, enhance their romantic lives, and line their pockets and those of family members."

Attorneys for the high-profile start-up have called the lawsuit "unfortunate and delusional," and Afshin Pishevar's lawyer said the restraining order involved a "baseless" allegation with no merit.

"The court's denial of this harassing motion after less than a minute of deliberation speaks for itself. There is no threat to Mr. BamBrogan," attorney Orin Snyder said. "Today's defeat is also the starting gun for exposing the lies behind the sham lawsuit filed yesterday by these ex-employees."

Berger said the judge's decision has no impact on the wrongful termination lawsuit.

"The judge determined there was no ongoing threat now that Afshin had been fired from Hyperloop One," Berger said. "We respect that decision and hope that the threatening behavior does not continue. If the threats do resume, however, we will be back in court to protect our client."

— Reporting by CNBC's Mike Newberg, with contributions by Matt Hunter and Ari Levy.

Correction: This story has been revised to reflect that Afshin Pishevar is Hyperloop One's former chief legal officer.