LexAI Inc., an Austin-based startup developing AI-powered legal research tools, was sued Thursday in the Western District of Texas by Precision Analytics Corp., its founder's former employer, alleging that LexAI's core document-review algorithm was derived from trade secrets developed at Precision over a four-year period.
The Allegations
The complaint alleges that founder Dr. Sarah Kim, a former senior research scientist, copied proprietary training datasets and algorithm weights to her personal laptop within two weeks of her resignation. It seeks an injunction halting LexAI's product launch and damages of at least $40 million.
LexAI's Response
The company called the lawsuit "a transparent attempt to suppress competition" and said it would "vigorously defend its independently developed technology."