CNBC's Lipton Discusses 'Explosive' Hyperloop One Lawsuit

Hyperloop One, a scientific startup, is being sued by a co-founder on serious nepotism and cronyism allegations, CNBC's Lipton said today.
By Lindsay Rittenhouse ,

NEW YORK (TheStreet) -- Scientific startup Hyperloop One is being sued by Co-Founder Brogran BamBrogan, who alleges that the company's top leaders used its work to "augment their personal brands, enhance their romantic lives and line their pockets and those of their family members," CNBC's Josh Lipton reported on "Fast Money: Halftime Report" Tuesday.

Hyperloop One is aimed at developing a high-speed, futuristic product and passenger transportation system. The Hyperloop idea is a product of Tesla Motors' (TSLA) - Get Report CEO Elon Musk but he is not involved in the startup or lawsuit filed by BamBrogan, who was forced to resign from Hyperloop last month.

"This is an explosive lawsuit really involving some of the most well-known players here in Silicon Valley," Lipton noted. 

Co-Founder Shervin Pishevar, CEO Robert Lloyd and software services company Palantir Technologies Co-Founder Joseph Lonsdale, former Hyperloop partner, are all named in the suit.

"(BamBrogan) argues there was cronyism and nepotism occurring at Hyperloop One. Specifically he charges that Pishevar began dating the company's (public relations) vendor and increased her salary to $40,000 a month that was more than any employee at the company," Lipton said.

In addition, the suit claims that Pishevar implemented a "pay to place scenario," in which he pressured potential Hyperloop investors to invest in his own venture firm Sherpa Capital while Lonsdale "insisted" that the company hire his younger brother who has no relevant experience, he continued.

BamBrogan alleges that Pishevar's brother, Hyperloop's chief legal officer, at one time left a hangman's noose on his office chair. The lawsuit includes a photo of BamBrogan holding the noose which led him to resign on safety concerns, according to Lipton.

Loading ...