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A U.S. federal judge has temporarily barred former Palantir employees from recruiting their ex-colleagues to join their newly launched AI firm, Percepta AI. The decision follows a lawsuit filed by Palantir Technologies in October, alleging that the startup was built using confidential knowledge gained during the founders’ time at the company.

Judge Paul Oetken ruled that Percepta CEO Hirsh Jain and co-founder Radha Jain cannot solicit Palantir staff while the case is ongoing. However, he stopped short of preventing them from continuing their work at Percepta itself.

The court also ordered Joanna Cohen, another former Palantir engineer now employed by the startup, to respect a confidentiality agreement she had signed with her previous employer.

Palantir claims the founders used internal expertise to create a rival AI-focused operation that mirrors its own data-driven solutions for governments and businesses. The defendants argue that Percepta is fundamentally different, positioning itself as a consulting and engineering firm rather than a software vendor.

The ruling maintains limits on employee recruitment but allows Percepta to continue operating while the legal dispute unfolds. A more detailed explanation from the judge is expected once redactions are completed.