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Palantir Technologies Inc. (NASDAQ:PLTR) is one of the

9 Most Profitable Tech Stocks to Buy Right Now.

On May 13, 2026, Reuters reported that US District Judge Paul Oetken ordered Palantir Technologies Inc. (NASDAQ:PLTR) to arbitrate claims accusing three former engineers of using confidential information to build rival firm Percepta AI. The District Judge rejected the company’s effort to keep the case in court.

Oetken said Palantir Technologies Inc. (NASDAQ:PLTR) could not bypass arbitration by seeking just an injunction, writing that the contractual exception applied solely to enforcing arbitration itself, not underlying employment-related disputes, Reuters reported.

The company alleges CEO Hirsh Jain, co-founder Radha Jain, and Joanna Cohen accessed source code and customer data, then breached agreements protecting that information, Reuters said.

The defendants pushed for arbitration in March, noting employment agreements requiring such disputes to proceed outside court.

In earlier rulings, Oetken barred Hirsh Jain and Radha Jain from recruiting Palantir Technologies Inc. (NASDAQ:PLTR) staff and restricted Cohen from violating confidentiality terms, while allowing work at Percepta, Reuters reported.

Palantir Technologies Inc. (NASDAQ:PLTR) builds and uses software platforms that act as central operating systems for its customers. It operates in the Commercial and Government segments.

While we acknowledge the potential of PLTR as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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