Trader walks next to the Siemens Energy AG logo during Siemens Energy’s first public offering (IPO) at the Frankfurt Stock Exchange in Frankfurt, Germany, September 28, 2020.
Ralph Orlowsky | Reuters
General Electric on Thursday sued rival Siemens Energy, alleging that it used stolen trade secrets to bid on a contract worth it. “Billions of dollars”; to supply gas turbines to utilities.
The centerpiece of the lawsuit filed Thursday in the U.S. District Court in Virginia is a 2019 bid to supply gas turbine equipment and maintenance services to Virginia-based energy utility Dominion Energy.
During the bidding process, the suit claimed that Dominion employees had submitted confidential information sent by GE as part of a bid to Siemens employees.The information allegedly shared illegally with Siemens was also included. To analyze all bids for the Peakers Project, it serves as a “blueprint” to help Siemens win a contract worth at least $ 225 million and up to $ 340 million.
GE noted that Dominion serves approximately 4 million customers on the east coast and is “Important strategic partner for energy equipment manufacturers”
The new suit comes just months after Siemens liquidated Siemens Energy, which began trading on the Frankfurt Stock Exchange in September.GE was accused in a suit that Siemens used a trade secret to win a contract that raised its prices. Siemens Energy’s Initial Offering
A Siemens Energy representative did not immediately comment on the suit.
It was alleged Siemens did not disclose that one of its employees received trade secrets until September, about 16 months after the alleged first access to what GE describes as a letter. According to the lawsuit, the alert came after Siemens had completed its own internal investigation.
Since such information was disclosed, Siemens has It “firmly denied” to assure GE that documents containing trade secrets have been destroyed.
“At GE, we take our intellectual property very seriously, as this litigation is ongoing, we have no further comment at this time,” GE spokeswoman Mathilde Milch told CNBC.
GE asked the judge to stop using Siemens’ alleged theft of materials and pay at least hundreds of millions of dollars in damages.
“Siemens employees don’t just receive and distribute GE’s trade secrets,” GE said in the suit. “They are aggressively taking advantage of trade secrets and insisting clearly to gain an unfair trade advantage in preparing a competitive bid with GE.
GE’s trade secrets involving four gas turbines, pricing structures for different turbine units, and GE’s turbine maintenance process are all available to Siemens, as alleged GE said in a suit, Siemens employees are likely. It will use information allegedly stolen to help win eight other contracts totaling more than $ 1 billion.
Siemens’ acquisition of that information allows the company to “undercut GE and / or design products to meet GE’s requirements,” GE said in the suit.
“Even if a project that GE wins, Siemens can use GE’s confidential data to control the bidding process and lower prices, giving GE’s successful gas turbine project bid a win at some margin,” he said. Negative, ”added GE.
The company noted that it is now competing with Siemens for a contract with South Carolina-based Dominion Energy.GE said it was competing at a disadvantage as Siemens employees still had access to trade secrets. Bids for that contract are due next week.