Flexport Sues Former Employees for Allegedly Stealing Source Code to Launch Rival Freightmate AI
Flexport accuses ex-employees of stealing 70,000 confidential files and source code to create Freightmate AI.
Matilda
Flexport Sues Former Employees for Allegedly Stealing Source Code to Launch Rival Freightmate AI
Creating a startup that competes with your former employer can be risky. Apple, for example, once sued a former chip design executive who founded his own chip startup in a case that was dropped in 2023. Image:scyther5 / Getty Images A recent case involving logistics unicorn Flexport and a new competitor formed by two former employees sheds light on those risks. Flexport is suing the pair alleging that they stole thousands of its documents along with its source code to create their own rival startup, Freightmate AI — claims strongly denied by Freightmate. Both startups use technology to automate complex logistics and shipping processes. Flexport says it believes Freightmate’s COO Yingwei Zhao downloaded over 70,000 confidential Flexport documents after he agreed to form Freightmate with now-CEO Bryan Lacaillade while both were working at Flexport, per the lawsuit, which was filed last week in a California court. Flexport claims that Zhao took steps to hide his tracks like using Incognito Mod…
