Archer Aviation Inc. (ACHR) disclosed a new legal update regarding its ongoing dispute with Joby Aero, Inc. (JOBY), a key rival in the electric air taxi space. The update was disclosed in a Form 8-K filing and does not change Archer’s business plans or outlook. Specifically, Archer said it filed a motion to dismiss Joby’s complaint. The company noted that the lawsuit was first disclosed in November 2025 and that no hearing date has been set so far. Archer also stated that it plans to “continue to vigorously defend this matter,” according to the filing.
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Joby’s allegations surround a former staff member who left the firm in July and later joined Archer. Joby says he took files that held details on its plans, deal terms, and aircraft traits. Joby also says a review of digital records found that he sent Joby files to a personal inbox and changed access controls for many more files.
As a result, Joby says Archer used this data in an August push to land work with a real estate group that had held talks with Joby. The firm says the group told Joby that Archer knew parts of the Joby deal, which raised new concerns.
Meanwhile, ACHR shares dropped 6.74% on Monday, closing at $8.03.
What the Update Means for Investors
Importantly, Archer did not report any financial impact from the lawsuit. There was no mention of costs, reserves, or changes to guidance. In addition, the filing did not point to any effect on production plans, certification progress, or commercial timelines. While the lawsuit remains an overhang, nothing in this filing suggests a shift in Archer’s operating path or near-term strategy.
Is Archer Aviation Stock a Good Buy?
The Street analysts are relatively optimistic about the company’s prospects. Based on six recent ratings, Archer Aviation boasts a “Moderate Buy” consensus with an average ACHR stock price target of $12.40. This implies a 54.42% upside from the current price.
