Ayr Energy Sues Zetwerk for Trade Secret Theft, Seeks $1 Billion Damages
US-based transformer manufacturer Ayr Energy has filed a lawsuit against competitor Zetwerk, accusing it of trade secret theft, trademark infringement, and false advertising. The company is seeking over $1 billion in damages and an import ban.
Ayr Energy, a US-based transformer manufacturer, has launched a legal counter-offensive against competitor Zetwerk, alleging trade secret theft, trademark infringement, and false advertising. The company is seeking at least $1 billion in damages and a ban on the import of allegedly infringing transformers into the United States.
The lawsuit follows an earlier accusation by Zetwerk against Ayr Energy and its founder for allegedly using stolen confidential information to establish a rival business. Ayr Energy claims Zetwerk infiltrated its company with an employee under false pretenses to gain access to proprietary transformer business data.
Zetwerk has denied the allegations, stating that Ayr Energy's current suit was filed after its own previous claim against Zetwerk was withdrawn in California. Zetwerk had previously sued Ayr Energy in Texas in October 2025, seeking $100 million in damages and alleging that Ayr's founder misappropriated confidential documents upon leaving Zetwerk.
The dispute escalates the conflict between the two companies competing in segments of the US power equipment market. Ayr Energy, founded in 2024, supplies transformers, switchgear, and circuit breakers. Zetwerk, established in 2018, provides manufacturing services across various sectors, including energy.
Zetwerk is currently preparing for an initial public offering in India, a process that has heightened scrutiny on competitive practices within the transformer manufacturing industry.