Scooter Startup Lime Sues Hertz For Poaching Engineers

Urban scooter company Lime sued Hertz Corp on Thursday alleging unfair competition and accusing the rental car giant of improperly hiring the startup's senior engineers. Reuters reports: San Francisco-based Neutron Holdings Inc, which does business as Lime, filed the lawsuit (PDF) in California federal court seeking unspecified monetary damages and an injunction "to recover and protect its trade secrets." It also named Charlie Fang, who previously was Lime's head of engineering, and another engineer as defendants. Lime claimed that Fang, who joined Hertz last year as a senior vice president, violated his employment agreement to not solicit former colleagues after leaving the company. Hertz said in a statement it "vehemently disagrees with the claims made in the lawsuit." The loss of engineers has "significantly harmed" Lime, which provides short-term e-bike and scooter rentals in about 30 countries. The company said in the lawsuit it now faces "staff shortages, recruiting costs, and critical project delays." Hertz sought to "capitalize" on Fang and his team's knowledge of building "back-end infrastructure for ride-sharing and consumer facing apps so that it could gain a competitive advantage over other companies," according to the complaint.

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