Faraday Future has initiated legal action against Ding Lei, the founder of Human Horizons Holdings, the parent company of HiPhi. Faraday Future accuses Ding Lei of infringing on its trade secrets and engaging in unfair competition.
The lawsuit, filed by Faraday Future and its Chinese subsidiary, was lodged in the Intermediate People’s Court of Shenzhen, China. According to a statement from Faraday Future, Ding Lei is a former executive of the company.
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Faraday Future is seeking monetary damages and is requesting the court to compel Human Horizons to cease infringing on its trade secrets, particularly those related to the FF 91 electric vehicle.
The lawsuit demands that Human Horizons cease using the disputed trade secrets in the design, development, production, and sale of the alleged infringing products. Additionally, Faraday Future insists that Human Horizons discontinue the sale of these products and providing after-sales service using the contested trade secrets, while also halting any alleged unfair competition practices.
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Founded by Chinese businessman Jia Yueting, Faraday Future faced financial challenges, with Jia filing for bankruptcy in the United States in October 2019 due to substantial personal debts accumulated in China.
Human Horizons, including its brand HiPhi, was established in 2017 with a focus on the high-end EV market segment priced between RMB 500,000 ($69,450) and RMB 800,000 yuan.
Ding previously collaborated with Jia at LeSEE, the automotive division of Chinese internet firm Leshi, where he held positions such as co-founder, global vice chairman, and CEO for China and the Asia-Pacific region from 2014 to 2017. Ding announced his departure from LeSEE in 2017.
See also: HiPhi Founder Apologizes, Vows Turnaround as Production Halt Sparks Concern
HiPhi, like other Chinese EV manufacturers, has faced financial challenges. The company announced a six-month production halt starting February 18, shortly after the Chinese New Year holiday. Recent reports suggest HiPhi is in discussions with Changan Automobile regarding a potential takeover.
