Three leaders in the Advanced Air Mobility (AAM) market, Wisk Aero, Archer Aviation and Boeing announced that they have reached an undisclosed settlement to resolve the parties’ federal and state court litigation.
The eVTOL firms have settled their legal fight over allegedly stolen trade secrets, averting a case before a jury that would have likely harmed the developing aviation sector.
Boeing will participate in the private investment in public equity (PIPE) funding announced by Archer as part of its second-quarter earnings announcement.
Wisk will also receive Archer stock as part of Boeing’s participation in the company’s $215m PIPE.
In Archer’s Q2 results, the firm reported a $215m investment, which includes injections from Stellantis, Boeing, United Airlines, and ARK Investment, increasing Archer’s total funding to date to over $1.1 bn, bolstering Archer’s path to FAA certification and commercial operations in 2025.
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The parties have formed a partnership to promote the growth and development of the AAM sector.
Reuters reported several lawsuits have been settled as a result of the agreement.
Wisk was founded as a joint venture between Boeing and Google co-founder Larry Page’s Kitty Hawk Corp, which is now controlled entirely by Boeing.
In 2021, Wisk filed a lawsuit against Archer, accusing it of stealing trade secrets and infringing on its patents. Archer responded by suing Wisk in 2021 “for its false and malicious extra-judicial smear campaign” and Boeing in 2022.
As part of the settlement and autonomy agreement, Archer will give warrants to Wisk for up to 13.2 million shares.