Nikola Is Running Out of Chances in $2 Billion Tesla Patent Case
(Bloomberg) -- Nikola Corp. was warned by a judge that its $2-billion patent-infringement lawsuit against Tesla Inc. may be dismissed unless the alternative-energy truck maker acts soon to keep it alive.
Nikola had told the judge it’s been working with Tesla on litigation schedule adjustments while its founder and former chief executive officer Trevor Milton is fighting criminal securities fraud charges.
U.S. District Judge James Donato in San Francisco said in an Oct. 18 order he’s giving Nikola another chance after he told the company Sept. 29 that it had “dropped the ball” without explanation.
“Nikola’s ostensible reasons for not responding to the court’s orders are not particularly compelling,” the judge wrote, noting the matter remains administratively closed. “The case will not be dismissed at this time for failure to prosecute, but that may change if Nikola does not move this case forward to resolution in an efficient and timely manner.”
The case is Nikola Corp. v. Tesla Inc., 18-cv-07460, U.S. District Court, Northern District of California (San Francisco).
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