TP-Link, a California-based networking company, has filed a lawsuit against Netgear, its biggest rival, over an alleged smear campaign that is said to be aimed at damaging its reputation and sales. The lawsuit, filed Monday in Delaware federal court, claims that Netgear orchestrated a campaign to spread false information about its technology being infiltrated by Chinese hackers.
The lawsuit alleges that this campaign could result in a sales loss of over $1 billion and violates a 2024 settlement agreement between the two companies. The 2024 settlement, which included a $135 million payment from TP-Link to Netgear, contained a clause stating that Netgear promised not to disparage its competitor. The current lawsuit is the first time the company has alleged that its rival is engaging in such practices.
Meanwhile, TP-Link has faced increasing scrutiny from US lawmakers over national-security concerns, with members from both parties expressing worries that its wireless equipment could be exploited by Chinese hackers. The company is currently under a series of investigations into its routers following a string of attacks on its devices.
Netgear has not yet responded to the allegations, but the lawsuit highlights the growing tensions between the two companies in the networking sector. TP-Link’s lawsuit claims that Netgear used journalists and internet influencers to spread its false claims, suggesting a coordinated effort to damage its competitor’s reputation and profits in the marketplace.