The following story involves a suspiciously overpaid fiancée, an attempted coup, and a noose.

Although the first phase of testing Hyperloop One was launched in May, true to Silicon Valley form it’s currently halted due to a lawsuit.

First let’s get up to speed with what Hyperloop One is, with this from their site:

Hyperloop is a new way to move people or things anywhere in the world quickly, safely, efficiently, on-demand and with minimal impact to the environment. The system uses electric propulsion to accelerate a passenger or cargo vehicle through a tube in a low pressure environment.

The autonomous vehicle levitates slightly above the track and glides at faster-than-airline speeds over long distances. We eliminate direct emissions, noise, delay, weather concerns and pilot error. It’s the next mode of transportation.

So what’s all the drama? Wired spills the beans:

Co-founder and CTO Brogan BamBrogan has resigned and filed a lawsuit accusing the company (Hyperloop One) and his co-founder Shervin Pishevar of breach of fiduciary duty, violating labor [sic] laws, wrongful termination, breach of contract, defamation, infliction of emotional distress, and assault.

This comes as a massive blow. The idea of hyperloop technology may be theoretical, but it’s possible.

BamBrogan and colleagues Knut Sauer, David Pendergast, and William Mulholland say the company leaders “established an autocratic governance culture rife with nepotism, and wasted the company’s precious cash.”

In the lawsuit, which names Shevin Pishevar, Afshin Pishevar, board member Joseph Lonsdale, and CEO Rob Lloyd as defendants, they allege that Shervin Pishevar paid his fiancée $40,000 a month for public relations work and hired his brother Afshin as the company’s general counsel.

He allegedly told senior engineers to stop work to give office tours for various guests—including a nightclub doorman—and manipulated stock options to take advantage of employees.

And all this while you may be wondering where the noose is. Well…

According to the lawsuit, after the plaintiffs and seven other employees complained about the “misuse of company resources and corporate waste” in a letter, Afshin Pishevar left a hangman’s noose on BamBrogan’s desk.

The filing includes a security camera image of a man, apparently Pishevar, holding rope and walking through the office.

Hyperloop One’s lawyers have called the lawsuit “delusional and unfortunate” and said said the plaintiffs “tried to stage a coup and failed,” and promised “a swift and potent legal response.”

While this kind of back and forth and divorcing of founders is prevalent in Silicon Valley’s startup culture, it’s particularly weird in terms of the accusations of threats, childish actions and overpaid paramours.

For these reasons alone, investors are likely to be deterred, wondering if the company can spend its money responsibly. What we all know is that without investors it’s going to be a difficult road ahead.

Also, BramBrogan is too legit with that moustache.

[source: wired]