Faraday Future seeks monetary damages and demands that HiPhi's parent company, Human Horizons, immediately stop infringing on its trade secrets related to the FF 91.
(Image credit: Faraday Future)
California-based electric vehicle (EV) maker Faraday Future Intelligent Electric Inc (NASDAQ: FFIE) today announced that it is suing Ding Lei, founder of HiPhi's parent company Human Horizons Holdings, for allegedly infringing on its trade secrets and unfair competition.
Faraday Future and its Chinese subsidiary filed the lawsuit in the Intermediate People's Court of Shenzhen in China, and Ding is its former executive, according to a statement from the company.
Faraday Future is requesting monetary damages and further requests that the court order Human Horizons to immediately stop infringing on the company's trade secrets related to the FF 91, the statement said.
The company asks Human Horizons to stop using the trade secrets in question, and to stop utilizing the trade secrets in question to design, develop, produce, and sell the accused infringing products.
Faraday Future also demanded that Human Horizons stop selling these products or using the trade secrets in question to provide after-sales service for the allegedly infringing products, and immediately cease the alleged unfair competition.
Faraday Future is an EV company founded by Chinese businessman Jia Yueting, who filed for bankruptcy in October 2019 in the United States after amassing billions of dollars in personal debt in China.
HiPhi and its parent company, Human Horizons, were founded in 2017 to target the high-end EV market of RMB 500,000 ($69,450) to RMB 800,000 yuan.
Prior to the founding of Human Horizons, Ding worked with Jia at LeSEE, the car-making arm of Chinese internet company Leshi, from 2014 to 2017, where he served as LeSEE's co-founder, global vice chairman, and CEO of the China and Asia-Pacific region.
In 2017, Ding announced his resignation from his roles at LeSEE, saying it was after careful consideration and thorough communication with Jia.
HiPhi is the latest Chinese EV maker to run into financial trouble, announcing a six-month production halt on February 18 -- the first working day after the Chinese New Year holiday.
On February 28, several local media outlets reported that HiPhi was in contact with Changan Automobile to discuss a takeover.
($1 = RMB 7.1990)
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