TLDR
- Joby Aviation sued Archer Aviation in California court over alleged trade secret theft by a former employee who left in July
- The lawsuit claims the ex-worker downloaded confidential files about aircraft specs and business deals before joining Archer
- Archer rejects the claims and calls the lawsuit an attempt to gain competitive advantage through legal action
- JOBY stock gained 60% in 2025 while ACHR stock lost 25% during the same timeframe
- Court hearing scheduled for March 20, 2026, as both companies race to launch commercial air taxi services
The legal fight between electric air taxi companies escalated this week. Joby Aviation filed a trade secret lawsuit against Archer Aviation in California state court. The case revolves around a former Joby employee who left the company in July.
Joby says the ex-worker downloaded confidential company files before departing. These files allegedly contained sensitive information about aircraft designs, business plans, and deal terms. A digital audit revealed the employee sent Joby documents to a personal email address.
The lawsuit also claims the worker changed access permissions for many other files. Joby believes Archer used this stolen information during a business pitch in August.
The Real Estate Connection
Joby says Archer approached a real estate company that had been negotiating with Joby. During those discussions, the real estate firm noticed Archer knew specific details about the proposed Joby partnership. This raised red flags for Joby executives.
The company now seeks financial compensation and a court injunction. Joby wants to stop Archer from using any allegedly stolen trade secrets. In court documents, Joby used the term “corporate espionage” to describe the situation.
Archer Fires Back
Archer Aviation quickly responded to the allegations. The company filed an 8-K with the SEC denying all claims. Archer’s chief legal officer spoke to CNBC and called the lawsuit baseless.
Archer maintains the employee never shared Joby files. The company argues Joby is using litigation as a business tactic. Archer says it will fight the case while staying focused on its commercial launch plans.
Market Reaction and Stock Movement
The two stocks moved in different directions this year. JOBY shares jumped more than 60% in 2025. ACHR shares dropped over 25% during the same period.
Both stocks fell Thursday after lawsuit news broke. Joby declined around 5%. Archer dropped approximately 8%. The decline happened during a wider market selloff.
What Happens Next
A court hearing is set for March 20, 2026. The case will likely take months to resolve through the legal process. Both sides will exchange evidence and documents during discovery.
Trade secret lawsuits can be expensive and time-consuming. Legal fees may pile up for both companies as the case progresses. Stock prices could swing based on court developments.
The lawsuit doesn’t appear to impact flight testing or aircraft production. Both companies continue working with regulators on certification. Neither has said the legal battle will delay commercial operations.
Joby and Archer are both working to bring electric air taxis to cities. They face similar regulatory approval processes. Each company needs final clearance from aviation authorities.
Investors should monitor court filings as they become public. The March 2026 hearing will address preliminary legal questions. The full case could extend well beyond that date depending on how both sides proceed.
A court hearing is scheduled for March 20, 2026, to address the trade secret allegations between the two air taxi companies.
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