Palantir secures partial win as judge blocks ex-employees from poaching workers for Percepta

Palantir Gets Partial Win in Fight With Ex-Workers at AI Startup

A judge agreed with Palantir Technologies Inc. that a trio of former employees likely violated confidentiality and non-solicitation agreements in founding their artificial intelligence startup but stopped short of halting their work at the new company, Percepta. Palantir sued Percepta co-founder and Chief Executive Officer Hirsh Jain last year, claiming he "began an aggressive campaign to recruit numerous Palantir employees" after leaving the company in August 2024. The firm also named two other former Palantir executives who moved to Percepta as defendants, claiming Radha Jain worked to poach co-workers and Joanna Cohen stole confidential documents. US District Judge J. Paul Oetken issued a one-page order Wednesday but did not specify what he would require of the defendants. He said he will make public a more extensive decision after ruling on requests by the parties to protect sensitive material. Palantir had asked for an order blocking all three from continuing to work at Percepta, but Oetken denied that request. The judge said Hirsh Jain and Radha Jain, who are not related, probably violated agreements not to solicit employees from Palantir. Oetken said Cohen likely violated Palantir's confidentiality. Both sides claimed victory in statements on Wednesday. "We are pleased with the court's decision to enjoin every defendant," said Palantir lawyer Harris Mufson. "Today's order sends a clear message: Palantir will act - and prevail - against those who unlawfully solicit our employees or exfiltrate our confidential information. We will continue to hold unlawful actors accountable in this case and others." Steven Feldman, a lawyer for the defendants, said, "We are thrilled that the court has rejected Palantir's central claims, including their misguided non-compete and tortious interference arguments, and that the full team can get back to work building Percepta immediately." General Catalyst, the venture capital firm that owns Percepta, didn't respond to a request for comment but has previously said that the Palantir lawsuit is "baseless." Palantir said in its suit that Hirsh Jain had worked as an executive in charge of its health care portfolio. Radha Jain designed and built Palantir's flagship software, according to Palantir. Cohen, an engineer, worked with some of Palantir's biggest customers. In court papers, Palantir quoted Hirsh Jain in a text to Radha Jain saying "I'm down to pillage the best devs at palantir" for Percepta. Palantir, co-founded by billionaire Peter Thiel, is best known for its work with US military and intelligence agencies, while also selling its data analysis tools to governments and commercial customers. The case is Palantir v. Jain, 25-cv-08985, US District Court, Southern District of New York (Manhattan).

US judge blocks ex-Palantir staffers from poaching workers for new AI firm

Feb 18 (Reuters) - A federal judge in Manhattan on Wednesday granted Palantir Technologies' (PLTR.O), opens new tab bid to block a former vice president and senior engineer from soliciting its employees to join the competing company they launched last year, Percepta AI. The ruling by U.S. District Judge Paul Oetken will be in place pending the outcome of Palantir's lawsuit filed in October claiming Percepta CEO Hirsh Jain and co-founder Radha Jain used Palantir's secret information to build a "copycat" AI software firm. It is not clear if they are related. Oetken also barred Joanna Cohen, a former Palantir engineer now with Percepta, from breaching a confidentiality agreement she had signed with Palantir. But the judge denied Palantir's request for now to block the defendants from violating agreements they signed not to compete with the company or solicit its customers. Oetken's opinion explaining his reasoning was sealed. The judge said he would publish a redacted version after lawyers on both sides proposed redactions. Percepta is owned by venture capital firm General Catalyst and was publicly unveiled in October. Palantir and General Catalyst did not immediately respond to requests for comment. In the lawsuit, Palantir says that just like its own AI-powered software, Percepta's services are designed to make businesses and government agencies more efficient using data they already possess. In court filings, the defendants have said that Percepta is a consulting and engineering firm and, unlike Palantir, does not sell software or provide data analytics. Hirsh Jain was in charge of Palantir's healthcare portfolio, Radha Jain helped design and build the company's flagship software, and Cohen worked on AI solutions for individual customers, according to court filings. Hirsh Jain left Palantir to found Percepta in August 2024, and the other defendants followed. Percepta hired at least 10 former Palantir employees within months of its founding last year, and nearly half its workforce are former Palantir staffers, according to the lawsuit. Palantir says the defendants signed agreements barring them from competing with the company for one year after leaving, from soliciting Palantir customers or employees for two years, and from using any of the company's confidential information outside their employment. The lawsuit accuses the defendants of breaching those agreements and seeks to force them to comply with them. Reporting by Daniel Wiessner in Albany, New York; Editing by Alexia Garamfalvi and Daniel Wallis Our Standards: The Thomson Reuters Trust Principles., opens new tab * Suggested Topics: * Litigation * Data Privacy * Intellectual Property * Antitrust Daniel Wiessner Thomson Reuters Dan Wiessner (@danwiessner) reports on labor and employment and immigration law, including litigation and policy making. He can be reached at [email protected].