Hyperloop One Settles Lawsuit with Former Employees

Los Angeles-based Hyperloop One (H1), which is developing a high-speed pneumatic transportation system, says it has settled a lawsuit initiated this summer by co-founder and former chief technology officer Brogan BamBrogan and three other former employees. Terms of the settlement weren’t disclosed.

The lawsuit alleged financial mismanagement by co-founder Shervin Pishevar, whose Sherpa Capital firm helped fund H1, breach of contract and harassment and threats. In response, H1 filed a $250 million countersuit, claiming BamBrogan had tried to lead a coup against Pishevar and other company leaders.

H1 CEO Rob Lloyd announced the settlement in a memo to current employees on Friday. He says the company has 65 full-time employees in Nevada and remains on schedule to test a full-scale prototype of its system there early next year. The company (formerly known as Hyperloop Technologies Inc.) also is working on systems in the United Arab Emirates and Europe.

BamBrogan and the three other former employees involved in the lawsuit say they are moving forward with plans for their own hyperloop system. No other details were provided.

H1 is one of several companies working on the “hyperloop” high-speed transportation concept proposed by Tesla Motors Inc. CEO Elon Musk in 2013. The system features a pod levitated by magnets and accelerated on a cushion of air by linear induction motors and air compressors in a partial-vacuum tube. The controlled environment is designed to minimize friction and air resistance, allowing the pod to quickly achieve speeds of 750 mph with relatively little use of energy.