Groq is facing a lawsuit related to its proposed $20 billion licensing deal with Nvidia. Former Groq engineers say they were left out of a so-called “acqui-hire” transaction, after Nvidia moved forward without including them.
Separately, the lawsuit also alleges that Groq’s board and stock-related processes do not protect shareholders adequately. According to reports, the case claims stockholders were “squeezed out” through what plaintiffs describe as a lowball valuation and a sale of assets to Nvidia. The filings further allege that the board proceeded without a required stockholder vote and without an adequate process aimed at maximizing value.
Outlets describe the dispute from slightly different angles: one emphasizes the engineers’ claim about being excluded from an acqui-hire arrangement, while others focus on shareholder and corporate-governance allegations, including valuation, voting requirements, and whether the board sought to secure the best possible deal price. The matter is reported to be filed in Delaware.
