A US federal judge has rejected Tesla‘s (Nasdaq: TSLA) bid to stop Matthews International Corp (Nasdaq: MATW) from selling battery technology, rejecting the electric vehicle maker’s claim of trade secret theft.
Tesla sought a temporary restraining order as part of its $1 billion lawsuit against Matthews, which it accuses of sharing confidential battery electrode technology with competitors.
Tesla filed the initial lawsuit in June 2024, claiming Matthews violated confidentiality agreements related to technology used in Tesla’s 4680 battery cells. Matthews says it developed the technology before Tesla existed.
The 175-year-old industrial supplier points to its US Patent No. 12,136,727 as proof of its independent research. Matthews started as a memorial and funeral services company before expanding into industrial technology.
Tesla has responded by filing additional lawsuits in the US District Court for the Northern District of California. Matthews calls these suits “meritless” and describes them as bullying tactics.
The disputed technology underpins Tesla’s 4680 cells, which the company views as crucial to its future. Tesla plans to mass-produce these cells and develop four new variants by 2026, according to reports from China in July 2024.
Matthews says it will fight the new lawsuits while pursuing counterclaims against Tesla for wrongful conduct.
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