Tech

Hyperloop One settles suit with former employees

A concept rendering showing a Hyperloop One station in the Nordic region.
Hyperloop One

Hyperloop One, the developer of a futuristic high-speed transportation system, settled a lawsuit with four former employees.

"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," the Los Angelesbased company said on Friday in an emailed statement.

The company was sued in July by co-founder Brogan BamBrogan and a group of early employees who claimed Hyperloop One's top leaders misused funds, breached their fiduciary duties and conspired to enrich themselves.

Chief Executive Officer Rob Lloyd told his staff in a memo obtained by CNBC that lawsuits "often halt momentum until they can be resolved. That didn't happen here."

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Lloyd added that since the suit was filed, the company started the world's first hyperloop fabrication facility, revealed designs for the first hyperloop to go from Dubai to Abu Dhabi in 12 minutes and announced a $50 million investment.

In resolving the suit, Hyperloop One brings to a close a high-profile drama featuring allegations of harassment, conspiracy and nepotism. Hyperloop One, which is commercializing a system conceived by SpaceX founder Elon Musk, aggressively fought back with a $250 million countersuit against what it called the "gang of four."

The settlement amount wasn't disclosed in the statement or in Lloyd's letter.

A similar statement was sent on behalf of Justin Berger, the lawyer for BamBrogan and the other three ex-employees.

"My clients are pleased to announce that they have reached a confidential resolution of litigation with their former employer and look forward to moving on with their future plans," Berger wrote.