Zetwerk, Ayr Energy settle trade-secret disputes in US, India

BENGALURU: Manufacturing platform Zetwerk and US power equipment maker Ayr Energy have settled their legal disputes, ending a months-long battle in which the two sides accused each other of stealing confidential information and trade secrets.The companies said on Monday that they had reached a global settlement covering all outstanding disputes between them, their affiliates and individuals involved in the cases. They dismissed claims pending before the Texas Business Court, as well as proceedings involving Zetwerk and Ayr co-founder Anirudh Reddy in a Bengaluru court. The two sides also jointly sought termination of the related investigation before the US International Trade Commission (ITC).Financial and other terms of the settlement were not disclosed.The agreement closes a legal fight that began when Zetwerk took Ayr to court. In October 2025, Zetwerk and its US subsidiary Unimacts Global sued Ayr and Reddy in Texas, alleging that Reddy had incorporated Ayr while serving as a senior Zetwerk executive and had taken confidential customer, pricing, supply-chain and technical information with him. Zetwerk had sought around $100 million in damages.Ayr subsequently brought its own claims against Zetwerk, accusing the Indian company and its affiliates of improperly obtaining Ayr’s confidential information to build a competing transformer business in the US.Ayr had also approached the ITC, seeking restrictions on imports of transformers it alleged were linked to the misuse of its trade secrets. Its counterclaims in the Texas proceedings had sought damages of at least $1 billion. Zetwerk had denied Ayr’s allegations and said the claims were retaliatory.The dispute had intensified as Zetwerk prepared for an initial public offering in India, putting its US transformer operations and litigation exposure under greater scrutiny.US-based Ayr makes high- and medium-voltage equipment, including transformers and switchgear, for data centres, utilities and power producers.Get the latest Business News and Live updates. Download the TOI app.