Summary A US District Judge threw out a case against Boeing, which was brought forward by Zunum, a US-based startup. The startup looked to develop a hybrid-electric aircraft, yet ran out of cash in 2018. While initially the jury ruled in Zunum's favor, the judge overturned that ruling.
James Robart, the United States District Court Judge for the Western District of Washington, threw out Zunum’s case against Boeing and Boeing HorizonX, concluding that the startup, looking to develop a hybrid electric regional aircraft, failed to provide evidence for its claims against the aircraft manufacturer. Tesla of Aviation Providing the background information for his decision, Robart described that Zunum strived to become the Tesla of commercial aviation, with the company being led by Matt Knapp and Ashish Kumar, two co-founders of Zunum. Both believed that the startup could have made air travel greener, faster, and more affordable using hybrid-electric technologies.
“Operating a jet startup, however, is an expensive endeavor. Before Zunum could shock the industry, it needed some money.” Thus, Zunum identified Boeing as a potential investor.
The latter agreed to invest in the company in 2017, loaning $5 million through a note purchase agreement (NPA) and an additional $4 million using the same method in May 2018. Each investment came with an investment rights letter (IRL) mandating Zunum to share more information with Boeing for limited purposes. While Zunum was actively seeking ot.