Home lawsuit Former CesiumAstro Executive Accused of Disclosing Trade Secrets to Competing Startup

Former CesiumAstro Executive Accused of Disclosing Trade Secrets to Competing Startup

CesiumAstro, an Austin-based startup specializing in active phased array and software-defined radio systems for spacecraft, missiles, and drones, has filed a lawsuit alleging that a former executive disclosed trade secrets and confidential information to a competing startup. The lawsuit, filed on March 25, claims that former VP of Product Erik Luther misappropriated sensitive information about investors, customers, and Cesium’s advanced radio technology.

Cesium has been at the forefront of space-based radio technology, having advanced and productized phased array antenna systems over its seven years in operation. The company has secured over $100 million in funding from venture capitalists and government sources, allowing it to develop a suite of products for both commercial and defense applications.

The lawsuit points to AnySignal, a startup that emerged from stealth in October last year and was formally incorporated in 2022. Cesium alleges that AnySignal edged them out in a sales bid to a major customer and attempted to solicit the interest of one of Cesium’s early investors. While Luther did not join AnySignal after leaving Cesium, he maintained personal connections with the co-founders, including CEO John Malsbury, with whom he had previously worked at a different company.

According to the suit, Luther’s personal connections with AnySignal’s co-founders led to him improperly disclosing confidential information about Cesium’s technology and business operations. Cesium asserts that without access to its technical diagrams and specifications, AnySignal would not have been able to develop its complex radio technology within its timeline and with its limited resources. The suit argues that Luther’s assistance allowed AnySignal to directly compete with Cesium in the specialized space for software-defined radios.

However, Luther vehemently denies all the allegations made against him. In his response filed with the court on March 29, Luther’s lawyer argues that Cesium fails to provide any concrete evidence linking Luther to AnySignal’s business efforts. He characterizes Cesium’s allegations as baseless and unsupported by facts.

AnySignal, based in El Segundo, California, was founded by Malsbury and COO Jeffrey Osborne in May 2022. The startup received $5 million in seed funding and is focused on developing a software-defined radio platform. Cesium’s lawsuit identifies AnySignal as a direct competitor. In February, AnySignal announced a partnership with private space station developer Vast for an advanced communication system for Vast’s flagship station, Haven-1.

The lawsuit was filed in the Western District of Texas under case number 1:24-cv-314. Both AnySignal’s CEO and CesiumAstro declined to comment on the lawsuit.

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