Judge asked to confirm $300M-plus SpaceX fund arbitration award after Munger, Linklaters defeat Quinn Emanuel

A Los Angeles investment dispute involving more than $300 million in SpaceX-related assets has moved into public view after Munger, Tolles & Olson LLP and Linklaters LLP asked a state court to confirm an arbitration award that handed their client a complete victory over K5 Global Technology LLC and affiliated investment entities.

The motion, filed Friday in Los Angeles County Superior Court, asks Judge Michael Shultz to confirm a final JAMS arbitration award issued by retired judge Elizabeth Allen White in favor of Innovation X Holdings QP, LLC - Series 2018-3. The award permanently bars K5 from removing Innovation X from a SpaceX-focused investment fund, preserves Innovation X's ownership interest and awards more than $14.6 million in attorney fees and costs.

According to the filing, the dispute arose after Innovation X, which invested in the K5-managed fund in 2018, explored selling its interest back to K5 in early 2025 so its investors could realize gains after seven years. The transaction fell apart when K5 failed to secure enough buyers willing to pay the firm's requested fees.

Innovation X instead restructured its own upstream investors through what the filing describes as a continuation fund transaction. K5 argued that restructuring violated contractual transfer restrictions and sought to expel Innovation X from the fund, redeeming its interest at its original purchase price despite the investment's appreciation to more than 10 times its initial value. Innovation X contended no transfer of its actual fund interest occurred and that Delaware law foreclosed K5's position.

Innovation X began arbitration in August 2025. A JAMS emergency arbitrator, retired U.S. District Judge Philip Gutierrez, granted interim relief preserving the status quo. Following a five-day evidentiary hearing before White, the arbitrator ruled for Innovation X on every claim and counterclaim.

In the motion to confirm, Munger lawyers describe White's findings in unusually strong terms. According to the filing, White concluded K5 breached its contractual obligations, acted in "bad faith," violated fiduciary duties and the implied covenant of good faith and fair dealing, and used a "pretext" to attempt to expel Innovation X "purely for its own monetary gain." The filing also says White found K5 principal Michael Kives disparaged Innovation X to SpaceX and that K5's asserted justification for removing the investor was "baseless."

After briefing on remedies, White permanently enjoined K5 from interfering with Innovation X's fund interest and awarded approximately $14.6 million in fees and costs, concluding the company's conduct was "unjustified," "deliberate, disloyal, and egregious," according to the filing. She also rejected K5's effort to pass those litigation costs through to fund investors.

The confirmation petition argues there is virtually no basis for overturning the award under either Delaware or California law, emphasizing the narrow scope of judicial review of arbitration decisions. It contends none of the statutory grounds for vacating an award--including fraud, arbitrator bias, misconduct or exceeding arbitral authority--are present and urges the court to enter judgment on the award.

Innovation X is represented by former U.S. attorney E. Martin Estrada, John L. Schwab, Anne K. Conley, Lorraine L. Abdulahad, Taylor Benninger and V. Roman Leal of Munger, Tolles & Olson LLP, along with Adam S. Lurie of Linklaters LLP.

According to a declaration filed with the motion, Quinn Emanuel Urquhart & Sullivan LLP represented K5 during the arbitration, with Alex Spiro delivering the opening statement and David Mader arguing the post-award remedies phase.

The case is Innovation X Holdings QP, LLC - Series 2018-3 et al. v. K5 Global Technology, LLC et al., 25STCV22873 (L.A. Super. Ct.).