Rivian Automotive Inc (NASDAQ:RIVN) shares are trading lower today. The company is reportedly set to face trial over accusations that it prompted former Tesla Inc. employees to steal trade secrets, according to a preliminary ruling by a California judge.

Judge Theodore C. Zayner of the Santa Clara County Superior Court tentatively refused Rivian's request to dismiss the case, asserting that Tesla had provided sufficient evidence for the case to proceed to trial.

The judge highlighted that some Rivian employees were inadequately investigated and not disciplined, which supports Tesla's claims.

The legal dispute originated in 2020 when Tesla filed a lawsuit against Rivian, alleging a concerning trend of employee poaching and the unauthorized use of proprietary information.

Rivian has reportedly hired 178 former Tesla employees, 70 of which joined the automaker directly after leaving Musk's company.

Tesla accused Rivian of deliberately encouraging its employees to defect and bring confidential data with them.

Tesla expanded the lawsuit in 2021, claiming that Rivian stole core technology related to its next-generation batteries.

Despite Rivian's efforts to demonstrate that it had conducted an investigation into the matter, Judge Zayner found that their evidence did not definitively prove the adequacy of the investigation.

A final hearing is scheduled for Wednesday at the Santa Clara court. Rivian stock has lost more than 32% in the last 12 months.

Investors can gain exposure to the stock via First Trust NASDAQ Clean Edge Green Energy Index Fund (NASDAQ:QCLN) and KraneShares Electric Vehicles And Future Mobility Index ETF (NYSE:KARS).

Price Action: RIVN shares are trading lower by 4% at $16.80 at last check Wednesday.