Earlier this month, Virgin Galactic filed suit in Los Angeles Superior Court against Firefly Systems and two of its officers, Michael Blum and P.J. King, alleging misappropriation of trade secrets and unfair competition.
The lawsuit is related to arbitration between Virgin Galactic and the company’s former vice president of propulsion, Thomas Markusic. Virgin alleges Markusic took trade secrets and confidential information with him when he left his position at the end of 2013 to co-found Firefly with Blum and King.
The lawsuit alleges that Firefly, Blum and King benefited from knowledge that Markusic took with him from Virgin Galactic. Markusic and the defendants have denied the claims.
Firefly laid off all of its employees at the end of September, saying the company had run out of money after an investor pulled out.
Firefly was developing a small satellite launcher, Firefly Alpha, that would have competed for business with the LauncherOne booster that Virgin Galactic is developing.