The suit alleges that by entering the deal with DMC, the defendants breached their contract and “fiduciary” duties. In doing so, the lawsuit says the defendants violated the Defend Trade Secrets Act and the Texas Uniform Trade Secrets Act and committed fraud.
Karma attorney Jesse Coleman told Automotive News that “Karma does aggressively protect its intellectual property rights, including its trade secrets” but declined to comment further on the case.
The lawsuit comes after the San Antonio City Council approved a $562,500 incentive package for DMC in April that paved the way for the company to apply for $1.25 million in tax refunds for setting up its headquarters in the city. The package requires DMC create 450 jobs by the end of 2026, paying an average salary of $145,600.
Karma, based in Irvine, Calif., and funded with Chinese investment, was founded in 2014 and has experienced several management setbacks in recent years.
