Employment Contract Claims Survive Motion to Dismiss


The U.S. District Court for the Southern District of New York denied defendants' motion to dismiss a complaint alleging that defendants improperly used confidential business information and solicited plaintiffs' employees and customers in contravention of defendants' employment agreements.

Plaintiff, Speedmark Transportation, is a "leading global provider of secure transportation services." Defendants are former employees who, while still employed at Speedmark, allegedly set up Everglory Logistics as an international freight forwarder that would compete directly with Speedmark. Thereafter, the individual defendants resigned, and solicited and induced a number of Speedmark employees to resign with them. After those resignations, two of the defendants solicited business from two long-time Speedmark customers.

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