The Future of Advanced Air Mobility

Archer Seeks $1B Damages over Wisk's Trade Secrets Lawsuit

Archer is seeking $1 billion in damages from rival eVTOL aircraft developer Wisk Aero, claiming that the latter’s lawsuit against it for alleged intellectual property theft amounts to “a false and malicious extra-judicial smear campaign.” The claim was made in a new filing on August 11 to the U.S. District Court for the Northern District of California as part of a case-management meeting.

“We have shown that Wisk's claims against Archer are false and nothing more than an attempt to stifle competition,” Archer said in a written statement. “If Wisk persists in going to trial, we will defeat them in court and immediately sue them for malicious prosecution. But even if Wisk drops its claims at this point, we will continue to seek damages for its illegal and equally baseless campaign to publicly smear our company outside of court.”

The lawsuit, initially filed by Wisk back in April, is expected to last for at least six months and could be heard by a jury. Archer is in the process of trying to close a merger with special purpose acquisition company Atlas Crest Investment Corp. that should lead to a share flotation on the New York Stock Exchange later this year. This transaction, which is expected to raise around $1.1 billion and value Archer at $3.8 billion, had been due to close by the end of June.

“Filing a lawsuit does not give Wisk a free pass to make false and damaging statements outside of the judicial process, and yet that is exactly what Wisk has been doing,” said Archer. “We believe we can prove more than $1 billion in damages in this counter-claim and we will seek full relief.”

According to start-up, the claim for $1 billion in damages is based on, "a number of factors but particularly on the impact on our ability to access capital on acceptable terms and impairing Archer's business relationships."  A spokeswoman told FutureFlight that the planned merger with Atlas is on track and will not be disrupted by the legal action. 

Wisk, which is a 50/50 joint venture between Boeing and Kitty Hawk, refuted Archer's claim for damages. "Archer's counterclaim is ludicrous and its troubles are purely self-inflicted," Wisk said in a statement. "Archer's filing is full of distortions and distractions from the serious patent and trade secret misappropriation claims it faces. We will vigorously pursue our case in court to prevent Archer from basing its business on Wisk's decade-plus record of investment, insight, and innovation in the eVTOL industry."