U.S. Attorney Decides Not to Bring Charges Against Archer Employee Who Is Central Focus of Wisk’s Civil Lawsuit Against Archer

Rhea-AI Summary

Archer Aviation Inc. (NYSE: ACHR) announced that the U.S. Attorney’s Office will not pursue charges against Dr. Jing Xue, following allegations of trade secret theft made by Wisk, a Boeing joint venture. This decision comes amidst a civil lawsuit filed by Wisk against Archer, reinforcing Archer's stance that Wisk's accusations lack factual basis. Archer's Chief Legal Officer expressed satisfaction with the investigation's outcome and criticized Wisk's efforts to stifle innovation through legal means. Archer awaits to continue its defense against Wisk's claims in court.

Positive

• No charges will be brought against Dr. Jing Xue, clearing the employee of serious allegations.
• The U.S. Attorney’s decision supports Archer's position against Wisk's trade secret claims.

Negative

• Ongoing civil lawsuit from Wisk may continue to pose reputational risks.
• Serious allegations of trade secret theft have been made, potentially impacting investor confidence.

PALO ALTO, Calif.--(BUSINESS WIRE)-- Archer Aviation Inc. (NYSE: ACHR) today announced that the U.S. Attorney’s Office has decided not to bring charges against its employee, Dr. Jing Xue, and has decided not to continue the investigation. The investigation had been instigated by allegations of trade secret theft pushed by Wisk, a Boeing joint venture.

Wisk’s allegations against Dr. Xue are the central feature of its civil lawsuit against Archer in the United States District Court for the Northern District of California. Moreover, it was Wisk that reported Dr. Xue to the FBI which, in response to Wisk’s report, sent a team of agents to knock down Dr. Xue’s front door.

“We are pleased with the expeditious and thorough nature of the investigation that was conducted and the decision not to pursue charges against Dr. Xue” Archer’s Chief Legal Officer, Andy Missan said. “We believe the U.S. Attorney’s decision strikes at the very heart of Wisk’s trade secret allegations against Archer and reinforces what we have said all along: that Boeing’s joint venture, Wisk, misused the judicial and criminal justice systems for the sole purpose of stifling innovation. We find these kinds of anti-competitive tactics by big business deeply disturbing.”

“Wisk’s allegations of ‘brazen theft’ and ‘wholesale’ misappropriation made against this employee were gravely serious, and have serious consequences” Missan explained. “At a minimum, such allegations should have been backed up by evidence. This outcome serves as further confirmation of what we’ve asserted from the outset of this case: Wisk’s claims lack any factual basis.”

Archer looks forward to continuing to defend itself and its employees against Wisk’s baseless claims in the civil case and to holding Wisk and its related parties accountable for their behavior in this matter.

About Archer

Archer’s mission is to advance the benefits of sustainable air mobility. Archer’s goal is to move people throughout the world's cities in a quick, safe, sustainable, and cost-effective manner. Archer is designing and developing electric vertical takeoff and landing aircraft for use in urban air mobility networks. Archer's team is based in Palo Alto, CA. To learn more, visit www.archer.com.

Source: Archer
Text: ArcherIR

View source version on businesswire.com: https://www.businesswire.com/news/home/20220203005387/en/

For Media

Louise Bristow

louise.bristow@archer.com

archer@launchsquad.com

Source: Archer

FAQ

What was the outcome of the investigation involving Archer Aviation's employee?

The U.S. Attorney's Office decided not to bring charges against Dr. Jing Xue.

What allegations was Wisk making against Archer Aviation?

Wisk alleged trade secret theft against Archer and its employee Dr. Jing Xue.

How did Archer Aviation respond to Wisk's allegations?

Archer expressed confidence in its defense and criticized Wisk for using legal tactics to stifle competition.

What is the significance of the U.S. Attorney's decision for Archer Aviation?

It reinforces Archer's claims that Wisk's allegations lack a factual basis and clears its employee of any wrongdoing.

Where is Archer Aviation based?

Archer Aviation is based in Palo Alto, California.