Audio By Carbonatix
A U.S. appeals court on Thursday reinstated an $81 million award against Boeing in a lawsuit accusing it of stealing trade secrets from electric-aircraft startup Zunum Aero.
The 9th U.S. Circuit Court of Appeals overturned a California judge's decision to throw out a jury verdict for Zunum, rejecting his finding that the information Boeing allegedly stole was not entitled to trade-secret protection.
A spokesperson for Boeing declined to comment on the appeals court's decision. Zunum attorney Vincent Levy of Holwell Shuster & Goldberg said that the decision "affirms what we have said from the start — that Zunum had an enormous opportunity to remake air travel, but Boeing took that opportunity away."
Washington State-based Zunum was founded in 2013 to develop small electric commuter aircraft that can travel up to 1,500 miles. Boeing's venture capital arm invested $5 million in the startup in 2017.
Zunum said in a 2020 lawsuit that it planned to begin selling its planes in 2022 but halted development after Boeing allegedly blocked its access to capital. The complaint said that Boeing developed its hybrid commuter aircraft using Zunum's trade secrets.
A federal jury last May awarded Zunum nearly $81.2 million from Boeing for trade secret theft and $11.6 million for tortious interference, but reduced the total award to $72 million based on damages that it said Zunum could have mitigated.
U.S. District Judge James Robart later set the final award at $81 million, but overturned the verdict last August after determining that Zunum did not adequately identify its secrets or show that they derived their value from being kept secret.
The 9th Circuit said on Thursday, however, that Zunum had provided "sufficient specificity" for the jury to find that its secrets were legally protectable as well as "not generally known, not readily ascertainable, and valuable."
The appeals court also ordered the case to be assigned to a new judge after Robart revealed that his wife had acquired Boeing stock through a retirement savings account during the litigation.
The case is Zunum Aero Inc v. Boeing Co, 9th U.S. Circuit Court of Appeals, No. 24-5212.
For Zunum: Vincent Levy of Holwell Shuster & Goldberg
For Boeing: Moez Kaba of Hueston Hennigan
Latest Stories
-
Christina Koch becomes first woman to travel around the moon on Artemis II
2 minutes -
Epstein survivors’ calls to meet King Charles and Queen harder to ignore as US visit approaches
8 minutes -
UN Secretary-General names Ghana’s Anita Kiki Gbeho as South Sudan envoy
9 minutes -
Mali withdraws recognition of Sahrawi Republic, backs Morocco’s autonomy plan
14 minutes -
Gov’t distributes over 8,500 laptops to One Million Coders project
15 minutes -
Julius Debrah, ‘man to beat’ as NDC’s James Agbey dismisses Musah Dankwah’s polls
21 minutes -
GPRTU in Savannah Region to protest alleged eviction in Damongo
50 minutes -
Re: Reinsurance does not replace process — A response to the SIGA–SIC defence
1 hour -
Gender Ministry supports Harriet Amuzu in ongoing abuse case
1 hour -
AG joins plaintiff to scrap OSP ?: We should be mindful of the mischief in this – Bobby Banson
1 hour -
Samson Lardy Anyenini questions willingness of Attorneys-General to prosecute political colleagues
1 hour -
It is only fair the OSP is heard in Supreme Court case – Bobby Banson
2 hours -
Asiedu Nketia resumes Ashanti tour, second leg kicks off on Sunday
2 hours -
NLA denies salary cut claims, threatens legal action over reports
2 hours -
BoG Governor honoured for stabilising cedi, improve inflation
2 hours