Apple inks settlement deal with A123 Systems over poaching case

Article by Christian A., on May 18, 2015

A settlement agreement has been reached by Apple Inc. and battery maker A123 Systems LLC to resolve a lawsuit that accuses Apple of poaching scientists to develop an electronic car. According to a May 11 filing in federal court in Boston by lawyers for A123, the parties have entered a deal, inked a term sheet, and are currently drafting a final agreement.

The filing didn’t indicate the terms of this agreement. The suit was filed in February, claiming that five former A123 workers (which include the head of its venture technologies division and three scientists) left to work for Apple’s car-battery division in breach of their agreement not to work for a competitor within a year of departing A123 Systems.

This lawsuit gives away a view of a portion of Apple’s product development plans, telling the public that experts in the car industry are being hired by the company. According to sources, Apple has been looking into car development and is hoping to start producing an electric vehicle by 2020 at the earliest.

However, it’s possible that it may choose not to continue with this project. Typically, it takes 5 to 7 years for automakers to develop a car. This suggests that Apple has set aggressive goals and this may mean that it is gearing up to compete with Tesla Motors Inc. and General Motors.

Apple has yet to comment on this report. Apple is facing some pressure to deliver new products that can drive growth for a firm that already has the biggest market capitalization. Investors are worried that smartphone sales have reached their peak. CEO Tim Cook wants the company to enter new categories.

Topics: apple, a123

If you liked the article, share on:

Comments

Recommended

Bimmerpost has posted several cool pictures of the new BMW G30 540i and the new G31 generation BMW 5-Series Touring, with both wearing the brilliant Rhodonite Silver Individual colour. The...
by - October 23, 2017
A few years ago, Lotus tried to take on Porsche. They had a five-car plan to go against competitors like Ferrari and Aston Martin. Though it did not go well,...
by - October 23, 2017
To keep the Nissan Maxima interesting, the Japanese automaker gives the 2018 model year a number of small tweaks. Some of these include standard Android Auto, which is a new...
by - October 23, 2017
It looks as if Chevrolet has everything planned out in terms of production. Firstly, they have plans of introducing the Corvette ZR1 in a few months, which will then be...
by - October 23, 2017
While Tesla Motors continues to struggle with regards to the assembly of its much awaited Tesla Model 3, investment firm Oppenheimer & Co. is confident that its previous production estimates...
by - October 22, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries