LOS ANGELES DAILY JOURNAL
THURSDAY, MAY 14, 2026 • PAGE 3
Zimbabwe EV venture accuses Toyota foundation of trade secret theft
The lawsuit was filed by attorneys David M. Stein and Nancy M. Olson of Olson Stein LLP, along with Brithem attorneys Michael J. Bowe, Lauren Ta- baksblat and Heidi Goldsmith. “Through years of research and field testing, Shantha developed an entire program uniquely suited to the challenging African environment that did not previously exist,” Bowe said in an email Wednesday. “This includ- ed developing the necessary techni- cal specifications for the electronic cargo tricycle and its batteries and other components.” He also cited “a battery swapping system optimized for off-grid envi- ronments, battery charging systems, fleet management and maintenance programs, supplier relationships, and successful community education and integrations programs.” Bloemen’s “only motivation was to improve Afri- can lives,” Bowe added. An email to TMF’s media relations department did not receive a re- sponse by press time Wednesday. MFA claims TMF induced it into a joint venture to gain access to its “first-of-its-kind” rural electric vehi- cle system and field data developed in Zimbabwe. Mobility for Africa v. Toyota Mobility Foundation, 2:26-cv- 05105 (C.D. Cal., filed May 12, 2026). According to the complaint, after obtaining that confidential information, TMF and its consultants abandoned
MFA and launched competing pro- grams. Those allegedly included the “Kisii Smart Community,” which MFA claims replicated key features of its own “Smart Village” program, including three-wheeled cargo vehicles, energy infrastructure and operational systems. MFA also pointed to a for-prof- it venture called “Songa Mobility,” created by consultants for TMF, and alleged it copied the foundational de- signs and operational model of MFA’s Hamba tricycle system. The com- plaint further asserted TMF plagia- rized its branding by using the slogan “mobility built with Africa, for Africa,” which MFA said closely resembled its own phrase, “mobility for Africa and by African communities.” The suit alleges breach of contract, fraud, breach of fiduciary duty and vi- olations of the federal Defend Trade Secrets Act. MFA contends the al- leged conduct stripped the company of its “first-mover” advantage and di- verted critical funding opportunities. The plaintiff seeks compensatory damages, restitution and injunctive relief barring further unauthorized use of its intellectual property. The case was filed in Los Angeles because TMF conducts business in the city and regularly litigates in the Central District of California, accord- ing to the complaint.
By Skyler Romero Daily Journal Staff Writer A Zimbabwean social enter- prise has filed a federal lawsuit in Los Angeles against the Toyota Mo- bility Foundation, alleging the global automotive giant’s philanthropic arm engaged in a fraudulent joint venture to misappropriate proprietary rural electric vehicle technology and field data. The complaint filed Tuesday by attorneys with Olson Stein LLP in Newport Beach and Brithem in New York claimed that after plaintiff Mo- bility for Africa provided the “proof of concept” for a first-of-its-kind e-mobil- ity ecosystem in Zimbabwe, the foun- dation and its consultants abandoned the partnership to launch competing programs. These allegedly included a for-profit venture using MFA’s intel- lectual property. “This is an ugly injustice perpetrat- ed by one of the most powerful com- panies in the world to promote its own ‘good citizenship’ at the expense of a small innovative African compa- ny formed solely for the purpose of helping rural Africans,” the complaint read. MFA and its founder, Shantha Bloemen, “have pleaded with TMF for over a year to remedy this abuse and been ignored, forcing it to com- mence this litigation as a last resort.”
skyler_romero@dailyjournal.com
Microsoft CTO testifies as OpenAI defense rests in Musk lawsuit
By Daniel Schrager Daily Journal Staff Writer A fter hearing the same doz- en or so names through- out trial in Elon Musk’s breach of charitable trust lawsuit against OpenAI, the jury was introduced to a whole new cast of characters Wednesday during a rap- id-fire final day of testimony. First up was Kevin Scott, the Chief Technology Officer of Microsoft, which Musk alleges aided OpenAI’s breach of charitable trust with $13 billion in investments as the company adopted a for-profit model. Scott, questioned by Russell P. Co- hen of Dechert LLP, detailed Micro- soft’s thinking at the time of the deal -- it didn’t want to risk falling behind in AI development and felt it needed to either invest in an existing ven- ture or ramp up its internal efforts significantly. He said the deal gave Microsoft a partner that could help it understand AI developers’ infrastruc- ture needs and develop its supercom- puters accordingly. Scott also sought to explain away an email that ques- tioned whether the OpenAI nonprofit donors would approve of the compa- ny building “a closed for-profit thing on its back.” Scott couldn’t recall the details of the due diligence Microsoft conduct- ed ahead of the deal, but luckily, Mi- crosoft’s next witness was corporate development executive Michael Wet- ter, who helped oversee that process. Wetter testified that OpenAI told Mi- crosoft the deal would not violate the nonprofit’s rights or any commitments to a third party. Microsoft’s extensive due diligence confirmed that, he said. “We understood we were entering into the agreement with the for-profit,” Wetter said, adding that the for-profit’s creation and acquisition of the nonprof- it’s intellectual property took place well
before Microsoft’s investment. Musk v. Altman et al. , 4:24-cv-04722 (N.D. Cal., filed Aug. 5, 2024). Sara Tofighbakhsh of MoloLam- ken LLP, representing Musk, pressed Wetter on the rights to review major decisions OpenAI granted Microsoft as part of the investments. “We had contributed probably 98% of the capital at that time,” Wetter said, before calling it a “basic protec- tion provision” Tofighbakhsh asked if that means Microsoft was granted “effective con- trol” of OpenAI. “We had an approval right on cer- tain transactions,” Wetter said. Microsoft handed the floor back to OpenAI, which crammed four wit- nesses and two deposition video clips into three hours of trial time. “Chief futurist” Joshua Achiam told the jury that, “unquestionably… OpenAI is dedicated to the mission,” before the company called a trio of experts: New York University law professor Daniel Hemel, Harvard law and economics professor John C. Coates and foren- sic accountant Louis Dudney. Hemel and Coates attempted to tear down the report that Musk’s expert, former Columbia Law School dean David Schizer, prepared for the case, which found that OpenAI’s cur- rent structure came at the expense of the nonprofit. “I don’t even really understand it,” Coates said of Schizer’s analysis that the profit caps offered to OpenAI’s early investors were high enough to hurt the nonprofit. The caps, he said, work in the nonprofit’s favor by di- recting the excess profits its way. “Fundamentally, [the OpenAI non- profit] has, in fact, fared well,” Coates said. Regardless of the investments’ structure, Coates said, OpenAI used the infrastructure and money from
Microsoft to expand the company, over 25% of which is owned by the nonprofit. “This very large pie, they have a very large slice of,” Coates said. Hemel said Schizer’s analogy of a museum gift shop taking control of the museum was far off base. Nine- ty-two of the 100 biggest nonprofits in the country have for-profit affil- iates, he said, which are often big- ger than the original nonprofit. “Having for-profit affiliates is very much the norm,” Hemel said. It was “entirely consistent with custom and practice” for OpenAI’s nonprofit to sell its IP to the for-prof- it, he said, as long as the two have the same mission. For the nonprofit to retain three of five board seats, “that would be going beyond cus- tom and practice,” Hemel said. Musk’s attorneys were on strict time limits from U.S. District Judge Yvonne Gonzalez Rogers and only directed a few questions at the two witnesses -- just enough time to highlight Coates’ role as an expert witness on behalf of Twitter when it sued Musk to enforce the $44 bil- lion merger agreement he’d signed before terminating. Dudney testified briefly that Ope- nAI had spent all of the money from Musk’s donations by November 2017, supporting the company’s ar- gument that Musk’s claims are time- barred, and the defense rested. “All of the pieces of the puzzle are now in the box,” Gonzalez Rogers told the jury. At closing arguments Thursday, the parties will outline what they believe the puzzle will look like when the pieces are as- sembled, she said. Then, she said, the decision will be in the jury’s hands.
daniel_schrager@dailyjournal.com
Los Angeles judge admonished again for misconduct Continued from page 1
an advisory letter — concerning his independent investigation of a traffic ac- cident scene and related disclosure fail- ures — also appears in the record, but an advisory letter is a separate, lesser form of discipline, not an admonishment. At his appearance before the commis- sion, Griego argued that serious health issues and prescribed medications
contributed to his treatment of small claims litigants. The commission noted, however, that when a medical condition contributes to misconduct, judges "are obligated to take time away from their duties until such time as they can once again perform their duties ethically."
Angeles County Bar Association rated him "not qualified." In 2017, the com- mission issued him an advisory letter for improperly investigating the scene of a traffic accident and related conduct, including failing to disqualify himself. This is the second formal admonish- ment, but in 2017, the CJP issued him
douglas_saunders@dailyjournal.com
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