Sidley Secures Win for a Leading Chinese Manufacturer of AI-Driven Electric Vehicles and Robotics in Equity Grant Suit

Sidley secured an order granting summary judgment on behalf of XPeng Inc., a leading Chinese manufacturer of AI-driven electric vehicles and robotics, and its U.S. research and development arm, XMotors AI (collectively “XPeng”). Ten Silicon Valley engineers working at XPeng had filed suit in the Superior Court of California, County of Santa Clara, asserting 11 causes of action ranging from breach of contract to fraud, alleging they had been denied equity in XPeng to which they were entitled, despite having resigned prior to XPeng’s successful IPO. The plaintiffs, who were seeking damages in excess of US$50 million, were represented by three law firms, and funded by a litigation fund, facts which complicated the matter. After more than four years of litigation, however, on January 29, 2026, Judge Daniel T. Nishigaya agreed with XPeng that offer packages providing that employees were “eligible” for equity did not constitute a grant of equity, and that equity could be subject to terms and conditions even if the terms and conditions were not yet specified. In a 22-page decision, the court granted summary judgment, dismissing the entire case, which was set for trial in March.

The team was led by Wendy Lazerson (Palo Alto) and consisted of Cecilia Chan (Palo Alto); Sarah Hemmendinger and Arielle Rodriguez (San Francisco); and Amelia Moore (Los Angeles).