Home / Business and Economy / Judge Orders Palantir to Arbitration in Trade Secret Case
Judge Orders Palantir to Arbitration in Trade Secret Case
16 May
Summary
- Palantir must arbitrate claims against three former engineers.
- Engineers are accused of using confidential information for a rival firm.
- A US District Judge rejected Palantir's attempt to keep the case in court.
US District Judge Paul Oetken has mandated that Palantir Technologies Inc. proceed with arbitration for claims involving three former employees. The company alleged these engineers illicitly utilized confidential data to establish Percepta AI, a competing entity. Palantir's bid to retain the legal proceedings within the court system was unsuccessful. Judge Oetken specified that the contractual exception did not permit bypassing arbitration for employment-related disputes, as reported on May 13, 2026.
The company contends that former CEO Hirsh Jain, co-founder Radha Jain, and Joanna Cohen accessed proprietary source code and sensitive customer information, thereby violating non-disclosure agreements. The accused engineers, in response, initiated arbitration in March, emphasizing their employment contracts that mandate such conflicts be resolved outside of traditional court settings.
Earlier judicial decisions had prohibited Hirsh Jain and Radha Jain from soliciting Palantir staff. Restrictions were also placed on Cohen regarding the violation of confidentiality terms, though she was permitted to work at Percepta AI. Palantir itself develops software platforms functioning as core operating systems for its clientele, operating across Commercial and Government sectors.
