Faced with a headline-grabbing lawsuit between its co-founders, Hyperloop One is doing damage control. The Los Angeles-based start-up, which is one of several companies racing to bring Elon Musk’s vision for a supersonic mass-transit system to life, is decreasing its remaining founders’ voting power after they were accused by another founder of conspiring to “line their pockets and those of family members.”

Bloomberg reports that following a series of all-hands meetings over the past several weeks, Hyperloop One informed its employees of new rules that will reduce the voting shares of co-founders Shervin Pishevar and Joe Lonsdale from a combined 78 percent to just 20 percent, effectively reducing their control over the company. The two men made the agreement to relinquish their voting shares to appease Hyperloop employees, according to Bloomberg’s source. The talks surrounding the agreement predate the lawsuit.

Earlier this week, former Hyperloop One chief technology officer Brogan BamBrogan sued his co-founder on the project, including Pishevar, the company’s C.E.O., and Lonsdale, among others, for a host of alleged offenses, including labor code violations, wrongful termination, breach of contract, defamation, and even assault. The details of the suit paint a picture of a company plagued by rampant nepotism, with Lonsdale hiring his brother’s two-person investment firm as their sole bank, and Shervin allegedly increasing the salary of a third-party public-relations representative whom he had begun dating to $40,000 per month, more than any other employee at the company.

Among the explosive accusations leveled in the lawsuit is the claim that Afshin Pishevar, Hyperloop One’s former general counsel and Shervin’s brother, put a noose on BamBrogan’s chair in the Hyperloop One offices after BamBrogan complained about the company’s perceived mismanagement. (A source close to the company told the Wall Street Journal that the rope was a lasso, and said that Afshin was fired as a result of the prank.) Orin Snyder, a lawyer for Hyperloop One, dismissed BamBrogan’s claims as “unfortunate and delusional” in a statement to Vanity Fair. “The claims are pure nonsense and will be met with a swift and potent legal response,” he said. BamBrogan left the company earlier this month after filing a request for a restraining order against Afshin.

The proposal to reduce Shervin Pishevar and Lonsdale’s voting shares, which could help defend against the lawsuit’s allegations of nepotism at the company, would grant 20 percent of Hyperloop One shares to BamBrogan’s replacement, Josh Giegel, and another 20 percent to board member Justin Fishner-Wolfson, Bloomberg reports. Final adoption of the proposal is pending the approval of Hyperloop One’s board.

This story has been updated.