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Terran Orbital is sue its former CTO , Austin Williams , a little over a calendar month after he and other shareholders publically called for a alteration in party leadership .
Williams was a co - founder of planet design and fabrication company Tyvak Nano - Satellite Systems , which was acquired by Terran Orbital in 2014 , and has since become core to the business . He is one of a handful of senior engineers who drop out in November 2022 ; concord to reportingfrom SpaceNewsat the clip , the trio resigned amid ongoing disagreements between the engineering and manufacturing department on how to meet output prey .
Terran Orbital ’s complaint filed on November 13 alleges that Williams did not provide proper advance notice of expiration per his exercise agreement . The company further allege that his doings acted against the troupe ’s best involvement and with a lack of skillful faith , in breach of his fiduciary duty and in injury to the company . Williams , the charge states , “ acted with oppression , hoax , and malice . ”
The fellowship further states that Williams was “ aided and abet ” by some telephone number of unknown people , which it identifies in the causa as “ [ John ] DOES 1 - 100 . ” Terran will update the complaint “ when the straight identicalness of any DOES are ascertained , ” the suit says .
The courtship against Williams get along a little over a calendar month after he and other investors publicly called on Terran ’s board of directors to make drastic change to fellowship leadership — including by put in a raw chief executive officer in place of Marc Bell and “ reconstituting ” the board . The mathematical group of investor , which holds approximately 8.4 % of the outstanding portion in the fellowship , publically released their letter to the boardcalling for these changes on October 12 . The mathematical group turn down to remark on this tarradiddle .
The group , which admit Tyvak ’s other cobalt - founders Jordi Puig - Suari and Roland Coelho , say in their alphabetic character that the company is “ operate from a position of impuissance due to leadership missteps , deficiency of interior controls , hapless corporate governance , and a loss of public market confidence . ”They cite a reserve worth $ 2.6 billion and the company ’s pitiful stock price — $ 0.81 as of today .
The first letter states that Williams would “ welcome the opportunity to research ” return to the society provided the change are implemented .
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The group has sent two more letters ; the third letter was sent on November 9 , just four days before Terran filed its lawsuit against Williams . In it , they reiterate their request to meet with the board to discuss their proposal , including talk about the chief operating officer candidate the group identify to substitute Bell .
“ It is simply impossible that the Board has refused to fill with us and rather has decide to adopt a seemingly hostile and dismissive attitude toward us as shareholders , ” the letter say . “ We conceive such a position only further erodes shareholder value and marketplace assurance in Terran . ”
While the lawsuit will have to be evaluated on its merits , it ’s uncommon for a company to litigate a digress executive a full year later over failing to give equal notice . Observers , such as other shareholders , may reasonably translate the fellowship ’s actions in this context as retaliatory or punitory , regardless of the outcome .
The suit was filed in the Superior Court of California under case routine 30 - 2023 - 01361218 - CU - BC - CJC .
