Zetwerk, an IPO-bound manufacturing platform, and US-based transformer startup Ayr Energy have settled their legal dispute by agreeing to dismiss all claims in lawsuits pending in Texas and Bengaluru courts. The companies also jointly sought termination of a related US International Trade Commission investigation, ending a conflict that began over a year ago, according to inc42.com.
The dispute centered on Zetwerk’s allegation that Ayr Energy’s founder, Anirudh Reddy, incorporated Ayr while still a senior executive at Zetwerk. Zetwerk claimed Reddy resigned in January 2025, months after Ayr’s incorporation, and had downloaded hundreds of internal documents, including customer lists and strategic plans. Zetwerk accused Ayr of using this information to secure contracts from customers in its sales pipeline. In May 2025, Zetwerk initiated a discovery proceeding in Delaware, which was denied in August 2025. The conflict escalated further in October 2025 before the settlement was reached.
This settlement resolves a significant legal challenge for Zetwerk, which is preparing for its IPO. The case highlights risks around employee transitions and intellectual property in the manufacturing and energy sectors. Legal disputes of this nature can impact startups’ growth trajectories and investor confidence. The resolution removes uncertainty for both companies, allowing them to focus on their core businesses without ongoing litigation distractions.
The companies have formally dismissed all claims in the Texas Business Court and the Bengaluru civil court, as well as sought termination of the US International Trade Commission investigation, as stated in their joint announcement. This marks the official closure of the dispute that began in early 2025.