A judge for the U.S. District Court for the Western District of Washington on Wednesday handed a win to The Boeing Co. (NYSE: BA), overturning a $72 million jury verdict from May.
Judge James Robart ruled that Zunum Aero, an electric aviation startup that was headquartered in Redmond, didn't provide sufficient evidence for its claims of breach of contract, trade secret misappropriation and tortious interference.
Robart called the initial jury verdict "an electrifying win" for Zunum, noting that the startup "threw the kitchen sink" at the aviation giant. His Wednesday order, however, went through the various claims and delineated why he felt they didn't have sufficient evidence.
"Having offered only vague and amorphous descriptions of its alleged trade secrets throughout trial, Zunum fell well short providing the 'specific, concrete examples' the jury needed to determine whether the alleged trade secrets were in fact trade secrets," Robart wrote in his decision.
Related coverage
Zunum, which was founded in 2013, first filed its complaint in King County in 2020 before the case was moved to federal court in 2021. The case centered on whether Boeing, as an investor in Zunum, had taken proprietary Zunum trade secrets to sabotage the company's search for more investors and partnerships.
Zunum planned to make regional, single-aisle and vertical-lift aircraft, among others. In 2019, however, it ran out of cash and went out of business.
“We are disappointed by the court’s decision to overturn the jury’s carefully considered and well-supported verdict," Zunum said in a statement. "We intend to appeal the court’s order and to reinstate the jury’s verdict.”
Zunum was focused on commercial hybrid and electric aircraft for ranges up to 1,500 miles. The company also received backing from JetBlue's venture arm. Zunum in 2018 signed a deal with French aerospace giant Safran to make engine turbines for Zunum's aircraft.
While Zunum felt Boeing had sabotaged the startup, according to Robart's background summary in his order, Boeing felt the startup failed because of mismanagement from leadership, lack of a realistic business plan and Zunum insisting on an overly high valuation.
“We are grateful for the court’s careful and thorough consideration of all the evidence at trial to reach this decision,” Boeing said in a statement.
For more stories like this one, sign up for Seattle Inno newsletters from the Puget Sound Business Journal and the American Inno network.
