By Chinonyerem Emmanuel
Executives at artificial intelligence startup Percepta AI are forcefully pushing back against a lawsuit filed by Palantir, arguing that the legal action is less about protecting intellectual property and more about crushing competition before a rival can gain traction.
In a court filing submitted this week, attorneys for Percepta’s leadership characterized Palantir’s claims as a deliberate attempt to intimidate former employees and discourage others from leaving the data analytics giant. Rather than a legitimate dispute over confidential information, the defendants argue, the lawsuit is designed to “stifle competition” and derail Percepta’s growth at an early and vulnerable stage.
“In truth, Palantir is looking to scare others away from leaving and to destroy Percepta before it can grow further,” defense lawyers wrote, urging the judge to deny Palantir’s request for relief.
The filing also takes aim at Palantir’s post-employment agreements, describing them as “facially overbroad and unenforceable.” According to the defendants, Palantir’s expansive interpretation of these agreements goes well beyond protecting trade secrets and instead serves as a tool to suppress competition in the fast-moving AI sector.
Palantir originally filed the lawsuit in October in the U.S. District Court for the Southern District of New York. The company accused Percepta co-founder and CEO Hirsh Jain, along with co-founder Radha Jain, both former Palantir employees, of using stolen confidential information to build what it described as a “copycat” business.
The complaint further alleged that the founders sought to recruit Palantir employees and “plunder Palantir’s valuable intellectual property” in the process.
The lawsuit also named a third Percepta employee, Joanna Cohen, accusing her of improperly handling sensitive information. Palantir claimed Cohen sent herself confidential documents after resigning and photographed sensitive materials she had downloaded onto her personal phone.
Percepta has consistently denied the allegations. In December, the startup rejected Palantir’s claims outright, calling the case “baseless” and asserting that no confidential information was ever used in building its technology or operations.
In Monday’s filing, Percepta’s attorneys said extensive forensic searches uncovered no Palantir materials in the company’s possession. They also defended Cohen’s actions, arguing that any screenshots were taken in “good faith” solely to help her complete work-related tasks. According to the filing, the materials in question would have been of no value to Percepta and, in any case, are now outdated and irrelevant.
As the legal battle continues, Percepta is positioning the case as a broader test of how far established tech companies can go in using litigation and restrictive contracts to limit employee mobility—and whether such tactics cross the line into anti-competitive behavior in an industry defined by rapid innovation and talent movement.
Source: CNBC
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