DeLorean Face Lawsuit from EV Startup Company, Karma, For Alleged Trade Secret Theft

DeLorean's Alpha5 EV is the next generation of the DMC-12, and it features a modern take on the electric vehicle that shocked the world on its first unveiling several months back. However, the vehicle is not yet available for all, and it already faces significant lawsuits against its existence from an EV startup company called "Karma."

Karma claims that DeLorean Motors Reimagined allegedly stole trade secrets from them that led to Alpha5's creation.

DeLorean Lawsuit: Karma Claims Trade Secrets Were Stolen

DeLorean Motors Reimagined, a Texas-based company that holds the rights to the DeLorean Motors Company (DMC), is now facing a lawsuit from an EV startup company called "Karma" over its new Alpha5 vehicle.

Karma is taking on the company's four employees, including that CEO Joost de Vries, COO Alan Yuan, VP Neilo Harris, and Chief Marketing Officer Troy Beetz, for allegedly stealing trade secrets from its initial dealings.

According to The Verge, Karma and DeLorean Motors Reimagined were in talks in 2020 for a supposed electric vehicle to bring the relaunch of the DMC-12 to the modern world.

The lawsuit said that DeLorean's new electric vehicle came from its initial transactions, and when the company opted out, the Alpha5 was made from their ideas without them in the picture.

DeLorean Motors Reimagined vs. Karma

However, according to CEO Joost De Vries (as per Automotive News), Karma's partnership with DMC was long-ended as the startup company did not meet the expectations they were looking for in a new vehicle. The CEO claims that DeLorean Motors Reimagined is a unique entity with a new electric car, the Alpha5.

This new EV from DeLorean is also different from the initial "low volume replica project" from its initial talks.

DeLorean's EV: Modern DMC-12

The DMC-12 is one of the most iconic cars in the world's history, especially as it was the feature vehicle in the famous trilogy known as "Back to the Future" by director Robert Zemeckis. One of the most notable elements in the movie is the car's transformation into a time-traveling device as it reaches 88 miles per hour, the preferred speed to kickstart the device.

Back then, reaching 88 miles per hour on a vehicle was already massive but is most certainly a dangerous feat to accomplish.

While other pop culture replicas and representations from brands also appeared for the public, like Nike's self-lacing sneakers, the HyperAdapt 1.0, the DMC-12 is still a prized possession for modern collectors worldwide.

Nevertheless, the company made it past the many obstacles it experienced in the past, especially in the early 1980s when John DeLorean first rolled out the sports car. There were supposed releases for the recent year's reimagination of the brand, with 2022 being the year it finally rolled out a vehicle that is now running on clean energy.

Still, it faces a lawsuit for allegedly stealing trade secrets from another company to create the new Alpha5 EV.

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Written by Isaiah Richard