Tesla Lawsuit
Tesla Lawsuit
Tesla Lawsuit
15 DISTRICT OF NEVADA
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18 Plaintiff, COMPLAINT
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COMPLAINT
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Case 2:18-cv-01088 Document 1 Filed 06/20/18 Page 2 of 13
1 SUMMARY OF DISPUTE
2 1. This suit arises from the misconduct of Martin Tripp (“Tripp”), a former employee of
3 Tesla, Inc. (“Tesla”) who unlawfully hacked the company’s confidential and trade secret information
5 2. Tesla has only begun to understand the full scope of Tripp’s illegal activity, but he
6 has thus far admitted to writing software that hacked Tesla’s manufacturing operating system
7 (“MOS”) and to transferring several gigabytes of Tesla data to outside entities. This includes dozens
9 3. Beyond the misconduct to which Tripp admitted, he also wrote computer code to
10 periodically export Tesla’s data off its network and into the hands of third parties. His hacking
11 software was operating on three separate computer systems of other individuals at Tesla so that the
12 data would be exported even after he left the company and so that those individuals would be falsely
14 4. Tripp also made false claims to the media about the information he stole. For example,
15 Tripp claimed that punctured battery cells had been used in certain Model 3 vehicles even though no
16 punctured cells were ever used in vehicles, batteries or otherwise. Tripp also vastly exaggerated the
17 true amount and value of “scrap” material that Tesla generated during the manufacturing process,
18 and falsely claimed that Tesla was delayed in bringing new manufacturing equipment online.
20 5. The Court has original jurisdiction of this action pursuant to 28 U.S.C. § 1331 because
21 this action arises under the Defend Trade Secrets Act, 28 U.S.C. § 1836, et seq., and has supplemental
23 6. This Court also has original jurisdiction of this action under 28 U.S.C. § 1332(a)(1)
24 in that the matter in controversy exceeds the sum or value of $75,000, exclusive of interest and costs,
25 and Tesla, on one hand, and Tripp, on the other, are citizens of different States.
26 7. This district is the proper venue for this action, as a substantial part of the events and
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1 PARTIES
2 8. Plaintiff Tesla, Inc. is a publicly traded Delaware corporation with its principal place
5 Sparks, Nevada.
6 BACKGROUND
7 10. Tripp joined Tesla in October 2017 at the Nevada Gigafactory as a process technician,
8 a job which Tripp later complained was not a sufficiently senior role for him. As part of his job,
9 Tripp had access to highly sensitive information relating to, among other things, certain facets of the
11 11. Before joining Tesla, and as a condition to his continuing employment, Tripp agreed
12 not to use or disclose Tesla’s confidential and proprietary information except in connection with his
13 work with Tesla. This obligation is memorialized in the Employee Proprietary Information and
14 Inventions Agreement that Tripp signed electronically on October 6, 2017 (the “Proprietary
15 Information Agreement”). In addition to his contractual obligations, Tripp owed a duty of undivided
16 loyalty to Tesla under Nevada law and was legally required to act with good faith towards the
17 company.
18 12. Within a few months of Tripp joining Tesla, his managers identified Tripp as having
19 problems with job performance and at times being disruptive and combative with his colleagues. As
20 a result of these and other issues, on or about May 17, 2018, Tripp was assigned to a new role. Tripp
22 13. Thereafter, Tripp retaliated against Tesla by stealing confidential and trade secret
23 information and disclosing it to third parties, and by making false statements intended to harm the
24 company.
25 14. On June 14 and 15, 2018, Tesla investigators interviewed Tripp regarding his
26 misconduct. After Tripp initially stated that no misconduct had occurred, Tesla investigators
27 confronted him with evidence to the contrary. At that point, Tripp admitted to writing software that
28 hacked Tesla’s MOS and to transferring several gigabytes of confidential and proprietary Tesla data
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1 to entities outside the company. This included dozens of photographs and a video of Tesla’s
2 manufacturing systems.
3 15. During the interview, Tripp also admitted that he attempted to recruit additional
4 sources inside the Gigafactory to share confidential Tesla data outside the company.
5 16. While its investigation is still in the early stages, Tesla has also discovered that Tripp
6 authored hacking software and placed it onto the computer systems of three other individuals at the
7 company so that confidential Tesla data could be persistently exported off its network from these
9 17. Tripp also made false claims about the information he stole from Tesla. Tripp claimed
10 that punctured battery cells had been used in some Model 3 customer vehicles even though the
11 evidence clearly demonstrates that no punctured cells were ever used. Tripp also used the Tesla data
12 that he exported to grossly overstate the true amount and value of “scrap” material that Tesla
13 generated during the manufacturing process, and he falsely claimed that Tesla was delayed in
15 18. Although Tesla’s investigation is ongoing, it has already suffered significant and
16 continuing damages as a result of Tripp’s misconduct, which it seeks to recover through this action.
19 19. Tesla realleges and incorporates by reference each of the foregoing paragraphs as
21 20. Tesla owns and possesses certain confidential, proprietary, and trade secret
22 information, as alleged above. This confidential, proprietary, and trade secret information relates to
23 products and services that are used, shipped, sold and/or ordered in, or that are intended to be used,
24 sold, shipped, and/or ordered in, interstate or foreign commerce. Tesla vehicles and their components
26 21. Tesla derives independent economic value from the fact that its confidential,
27 proprietary, and trade secret information is not generally known to the public and not readily
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1 ascertainable through proper means. Tesla has taken, and continues to take, reasonable measures to
3 22. Without Tesla’s consent, Tripp misappropriated the confidential, proprietary, and
4 trade secret information in an improper and unlawful manner as alleged herein, and thereby
5 committed one or more acts of actual or threatened misappropriation of trade secrets within the
7 23. The improper means used by Tripp to acquire and disclose Tesla’s trade secrets
8 include:
11 c. Exfiltrating confidential and proprietary data from Tesla’s MOS for the
15 manufacturing systems;
17 systems; and
20 24. As a direct result of Tripp’s conduct, Tesla has suffered, and if the conduct is not
22 25. Tripp’s conduct entitles Tesla to an injunction based on actual and threatened
24 26. Tesla requests that the Court take affirmative action to protect its trade secrets, as set
26 personal USB and electronic storage devices, email accounts, “cloud”-based storage accounts, and
27 mobile phone call and message history to determine the extent to which Tesla trade secrets were
1 27. Tripp’s misappropriation and disclosure of Tesla’s trade secrets entitles Tesla to
2 monetary damages, fees, and costs, as provided in 18 U.S.C. § 1836(b)(3)(B). Tesla is also entitled
4 28. Tripp’s misappropriation of Tesla’s trade secrets was willful and malicious and was
5 undertaken for the purpose of harming Tesla. Tesla therefore seeks exemplary and punitive damages
8 Nevada Uniform Trade Secrets Act, Nev. Rev. Stat. §§ 600A.10 et seq.
9 29. Tesla realleges and incorporates by reference each of the foregoing paragraphs as
11 30. As set forth above, Tesla owns and possesses data, compilations, programs,
12 techniques, methods, products, systems, processes, designs, procedures, and computer programming
13 instructions and code that derive independent economic value from not being known generally to,
14 and not being readily ascertainable through proper means by, the public or any other persons who
15 can obtain commercial or economic value from the information. Tesla has made, and continues to
17 31. At all relevant times, Tripp had a duty to maintain the secrecy of Tesla’s trade secrets.
18 However, in violation of this duty and Nevada law, Tripp disclosed that information to others, and
20 32. As a direct result of Tripp’s conduct, Tesla has suffered, and if the conduct is not
21 enjoined, will continue to suffer, harm. Tesla requests injunctive relief pursuant to Nev. Rev. Stat.
22 § 600A.040.
23 33. Tripp’s conduct entitles Tesla to its damages, as well as Tripp’s unjust enrichment, in
25 34. Tesla requests that the Court take affirmative action to protect its trade secrets, as set
27 personal USB and electronic storage devices, email accounts, “cloud”-based storage accounts, and
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1 mobile phone call and message history to determine the extent to which Tesla trade secrets were
3 35. Tripp’s misappropriation of Tesla’s trade secret information was willful, wanton,
4 and/or reckless, and Tesla accordingly requests exemplary damages, as well as its attorney’s fees.
7 Breach of Contract
8 36. Tesla realleges and incorporates by reference each of the foregoing paragraphs as
10 37. Tesla and Tripp are parties to the Proprietary Information Agreement that Tripp
12 38. Tesla has performed all conditions, covenants, and promises required on its part to be
13 performed in accordance with the terms and conditions of the Proprietary Information Agreement.
14 39. Pursuant to Section 1 of the Proprietary Information Agreement, Tripp agreed to “hold
15 in strictest confidence” and “not disclose, use, lecture upon or publish” any of Tesla’s Proprietary
19 or experimental work, improvements, discoveries, inventions, ideas, source and object codes, data,
20 programs, other works of authorship, and plans for research and development.”
21 41. Despite the express terms of the Proprietary Information Agreement, Tripp breached
25 data and other false information, about Tesla’s Model 3 operations at the
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5 systems.
6 42. Through his conduct described herein, Tripp breached his contractual obligations to
7 Tesla.
8 43. As a direct and proximate result of the foregoing breaches, Tesla has suffered, and
12 44. Tesla realleges and incorporates by reference each of the foregoing paragraphs as
14 45. As an employee of Tesla, under Nevada law, Tripp owed a duty of loyalty to act solely
15 in the interests of his employer within the business area for which he is employed.
16 46. As a trusted employee, Tripp owed Tesla a duty that required him to, among other
17 things, refrain from conducting activities in any manner inimical to Tesla’s best interests.
18 47. Tripp breached his fiduciary duty of loyalty to Tesla by engaging in the wrongful
19 conduct alleged herein while still employed by Tesla, including, but not limited to:
26 manufacturing systems;
28 systems;
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2 parties; and
3 g. Making false claims to third parties about the information that he wrongly
4 took.
5 48. Tripp’s wrongful conduct alleged herein occurred at a time when he continued to owe
6 duties to Tesla. Tripp utilized Tesla’s time, facilities, and resources to engage in this wrongful
7 conduct.
8 49. As a direct and proximate result of these breaches, Tesla has sustained and will incur
9 further damages including, but not limited to, damages reflecting lost business, lost profits, and
10 damage to its goodwill, in amounts to be proven at trial. Tesla has also suffered and will continue to
11 suffer immediate and irreparable harm, and will continue to suffer such injury until the breaches are
13 50. The aforementioned wrongful conduct was intentional, malicious, and in bad faith
14 and has subjected and will continue to subject Tesla to cruel and unjust hardship in conscious
15 disregard of its rights, so as to justify an award of exemplary and punitive damages according to
16 proof at trial.
19 51. Tesla realleges and incorporates by reference each of the foregoing paragraphs as
21 52. Tripp has violated Nev. Rev. Stat. § 205.4765(1) by knowingly, willfully and without
22 authorization modifying, disclosing, using, transferring, taking, retaining possession of, copying,
23 obtaining or attempting to obtain access to, and permitting access to data, programs, and supporting
24 documents that exist inside or outside Tesla’s computers, computer systems, and/or computer
25 networks.
26 53. Tripp has violated Nev. Rev. Stat. § 205.4765(3) by knowingly, willfully and without
27 authorization taking, altering, transferring, disclosing, copying, using, retaining possession of,
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1 obtaining or attempting to obtain access to, and permitting access to Tesla’s computers, computer
3 54. As described above, Tripp wrote software that hacked Tesla’s MOS and transferred
4 to third parties confidential data (including photographs and a video of Tesla’s manufacturing
5 systems), combined with fabricated data and other false information, that was not authorized to be
6 disclosed regarding, among other things, Tesla’s financials, the process for manufacturing batteries
7 for Model 3, and the amount of scrap and raw materials used at the Gigafactory.
8 55. As a direct and proximate result of Tripp’s unlawful conduct within the meaning
9 of Nev. Rev. Stat. § 205.4765, Tripp has caused damage to Tesla in an amount to be proven at trial.
10 Tesla is also entitled to recover its reasonable attorneys’ fees pursuant to Nev. Rev. Stat. §
11 205.511(1)(c).
12 56. Tesla is informed and believes that the aforementioned acts were willful and
13 malicious in that Tripp’s acts described above were done with the deliberate intent to injure Tesla’s
14 business. Tesla is therefore entitled to punitive damages under Nev. Rev. Stat. § 205.511(1)(c).
17 A. For injunctive relief enjoining Tripp and all persons or entities acting in concert or
18 participation with him from obtaining, using, or disclosing any of Tesla’s confidential information
19 or trade secrets;
23 E. For recovery of attorneys’ fees, costs, and expenses incurred in this action; and
24 F. For such other and further relief as the Court may deem just and proper.
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By: /s/ Joshua A. Sliker
3 Joshua A. Sliker
Attorneys for Plaintiff
4 Tesla, Inc.
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2 Plaintiff Tesla, Inc. hereby demands a trial by jury of all issues so triable.
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By: /s/ Joshua A. Sliker
6 Joshua A. Sliker
Attorneys for Plaintiff
7 Tesla, Inc.
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2 Counsel for Plaintiff Tesla, Inc. will comply with LR IA 11-2 within 21 days of this filing.
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By: /s/ Joshua A. Sliker
6 Joshua A. Sliker
Attorneys for Plaintiff
7 Tesla, Inc.
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