CesiumAstro alleges in a newly filed lawsuit that a former executive disclosed trade secrets and confidential info about sensitive tech, traders and customers to a competing startup.
Austin-primarily based Cesium develops lively-phased array and software package-defined radio devices for spacecraft, missiles and drones. Though phased-array antenna systems have been applied on satellites for many years, Cesium has noticeably highly developed and productized the tech in excess of its seven years in procedure. The startup has landed additional than $100 million in enterprise and federal government funding, which it has utilized to establish a suite of goods for professional and defense clients.
The know-how is market: Only a handful of corporations operate at the slicing edge of area-based radio technologies, and Cesium no question pays close focus to any new entrant in this field. AnySignal, a startup that came out of stealth very last Oct but was formally incorporated in 2022, certainly caught the company’s eye, not the very least for the reason that it allegedly edged out Cesium in a gross sales bid to a key consumer and by trying to solicit the desire of a person of Cesium’s early buyers — both equally examples mentioned in the lawsuit.
In accordance to the accommodate, submitted on March 25, these illustrations are instantly associated to former VP of Merchandise Erik Luther’s misappropriation of trade techniques and confidential info on investors and prospects, which Cesium alleges he subsequently disclosed to AnySignal. Notably, Luther did not go away Cesium to work for AnySignal, as an alternative taking a job as head of marketing at a firm that operates in a distinctive sector totally. But the go well with claims that Luther preserved “personal connections” with AnySignal’s co-founders, owning labored with AnySignal CEO John Malsbury previously at a distinct business.
This resulted in AnySignal “recruiting and inducing Luther … to improperly disclose” the private and trade top secret information and facts, the fit claims. AnySignal’s CEO and CesiumAstro did not react to TechCrunch’s request for remark a attorney representing Luther referred TechCrunch to the March 29 authorized filings cited under.
Cesium is distinct on its posture in the lawsuit: It does not imagine that AnySignal could have made its complicated radio technology on its timeline and with its current methods — “absent CesiumAstro’s complex diagrams and technical specs (to which Luther had accessibility).”
“With only a number of employees and $5 million in trader funding, [AnySignal] would not even be in the exact same orbit as CesiumAstro, which has put in tens of thousands and thousands of pounds doing work with (now) 170 staff for 7 years to acquire its technologies,” the suit says. “But with Luther’s enable, AnySignal has launched to instantly contend with CesiumAstro in the specialised area for software-defined radios.”
Luther strongly denied all the allegations in two independent documents filed with the court docket on March 29 about the declare that he worked in live performance with AnySignal, he says the allegation is “not only false…but invented out of entire cloth.” (The reaction also denies Cesium’s claim that it is an “industry leader.”)
Cesium “does not cite any points or evidence whatsoever linking Luther and any of AnySignal’s company initiatives and the alleged proof that [Cesium] does cite do not assistance [its] contentions,” Luther’s law firm statements in the submitting. He goes on to say that Cesium usually takes a “Grand Canyon-sized leap from the paltry, very easily explainable evidence it cites to the outstanding allegation that Luther has been secretly aiding AnySignal and feeding them [Cesium’s] trade secrets with out citing any proof by any means.”
El Segundo-dependent AnySignal was established in Might 2022 by Malsbury and COO Jeffrey Osborne, and emerged from stealth touting $5 million in seed funding past yr. The firm is producing a application-defined radio platform Cesium’s lawsuit names it as a “direct competitor.” In February, a thirty day period in advance of the accommodate was filed, AnySignal introduced it experienced landed a partnership with personal house station developer Broad for an state-of-the-art conversation method for Vast’s flagship station, Haven-1.
The match was filed in Western District of Texas less than no. 1:24-cv-314.