Bizarre Lawsuit Could Derail Elon Musk’s Hyperloop

Oilprice.com ^ | 26-07-2016 | Musk

[bananaman22]

Just as Elon Musk’s revolutionary Hyperloop technology was starting to look like a serious business model, there are signs that one of the most promising companies commercializing the technology may be facing some serious internal problems. Hyperloop One is one of the two most prominent companies trying to develop commercial versions of the Hyperloop. The company is now facing an explosive lawsuit from one of its co-founders, which may end up permanently derailing the firm’s ambitions.

Hyperloop One is based in downtown LA and claims to be building a fifth mode of transportation based on Elon Musk’s original concept. The company has reportedly raised roughly $100 million to try and disrupt the transportation industry. In the lawsuit, Brogan BamBrogan, one of the firm’s co-founders, alleges that the company’s top leaders have misused funds, breached their fiduciary duties, and generally lined their own pockets rather than working to develop the company itself. The suit names Shervin Pishevar, Joe Lonsdale, and Robert Lloyd as defendants among others.

To get a sense for the magnitude of the lawsuit as well as the backing behind Hyperloop One, consider the following. Pishevar is an early Uber investor and hosted Barack Obama at his San Francisco home for a fundraiser last year. Lonsdale is a co-founder of Palantir Technologies – a private company worth roughly $9 billion based on media reports around its most recent VC fundraising efforts. Lloyd was reportedly on the short list to replace Cisco CEO John Chambers.

[Marko413]

Very unfortunate. I was really looking forward to this idea. Maybe HyperLoop can go to Virgin Galactic and get some tips from Richard Branson on how to give the finger to the big dogs.

[BobL]

Could never work in most of this country. The speeds they’re talking about will crush people on turns and going up mountains. Nice idea, for the Bonneville Salt Flats though.