News & Analysis as of

Confidential Information Misappropriation

Maynard Nexsen

Work This Way: A Labor & Employment Law Podcast - Episode 31: Trade Secrets and Protecting Confidential Information with Jennie...

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In this episode, our very own Jennie Cluverius sits down with Tina and Christy for part 1 of an in-depth conversation on how employers can protect their most confidential information from misappropriation. Jennie shares her...more

Baker Donelson

Top Developments in Trade Secret Law

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In the ever-evolving landscape of intellectual property law, trade secrets have emerged as a crucial area of focus, particularly in light of recent uncertainties as to the enforceability of non-competes. Since August 2023,...more

Seyfarth Shaw LLP

DraftKings Dispute with Former Executive Presents Battle Over Choice of Law for Non-Compete Agreements

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The ongoing battle between DraftKings Inc. and its former executive, Michael Hermalyn, remains contentious, with the District of Massachusetts’ decision to enforce Hermalyn’s non-compete now appealed and argued to the First...more

Proskauer - Trade Secrets

EV Trade Secrets Litigation Series: Tesla v. Rivian – A High-Stakes Legal Showdown

Continuing our series on electric vehicle (EV) trade secret litigation, see here and here, a California judge has tentatively given Tesla the green light to proceed with a trial against rival Rivian in March of 2025. This...more

Saul Ewing LLP

Virginia Appeals Court Reverses $2 Billion Jury Award to Appian in Trade Secrets Misappropriation Case

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Introduction - In May 2022, a jury in the Circuit Court for Fairfax County, Virginia awarded Appian Corp. (Appian) in excess of $2 billion in damages from Pegasystems, Inc. (Pegasystems) for misappropriating Appian’s trade...more

Dinsmore & Shohl LLP

A Cautionary Tale of Taking the Preliminary Injunction Gambit with Unclear Trade Secrets

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Recently, the U.S. Court of Appeals for the Federal Circuit provided a cautionary tale for trade secret owners who seek preliminary relief against a competitor who hires its former employees but do not clearly articulate the...more

Fisher Phillips

Motorola Wins Massive $407M Award in International Trade Secrets Dispute: 10 Tips for Employers to Protect Your Data

Fisher Phillips on

A federal appeals court recently applied a U.S. trade secrets law to sales outside the country, finding that Motorola was entitled to $407 million in damages from a foreign competitor for trade secrets misappropriation. A...more

Haug Partners LLP

Specificity Required for Trade Secret Protection under the DTSA: An Attempt to Protect “Confidential Information” Dooms...

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On June 17, 2024, the Federal Circuit issued a precedential opinion reversing a preliminary injunction imposed in a trade secret case, explaining that the district court abused its discretion by, inter alia, failing to fully...more

Irwin IP LLP

District Court Injects Six Errors into Four-Factor Preliminary Injunction Test 

Irwin IP LLP on

Insulet Corp. v. EOFlow, Co. Ltd., 2024-1137 (Fed. Cir. June 17, 2024) - The Court of Appeals for the Federal Circuit (“CAFC”) recently reversed the U.S. District Court for the District of Massachusetts (“District...more

Epstein Becker & Green

Update On Knicks/Raptors Trade Secrets Case and Other NBA Intellectual Property News

As we all await rulings on the lawsuits challenging the FTC’s Noncompete Rule (one of which may be decided later today), we provide an update on the Knicks/Raptors trade secret case that we previously discussed on EBG’s...more

BCLP

Post-Panuwat: Have You Reviewed and Updated Your Insider Trading and Other Corporate Policies?

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As discussed in our September 1, 2021 post, the SEC brought its first “shadow insider trading” case against Matthew Panuwat, a company employee who purchased options in a competitor’s shares shortly after learning his...more

Irwin IP LLP

The Pitfalls of Proprietary Information: Boeing Hit With $72M Trade Secrets Verdict  

Irwin IP LLP on

Zunum Aero, Inc. v. The Boeing Company et al., No. 2:21-CV-00896-JLR, (W.D. Wash. May 30, 2024) - A Washington jury recently issued a $72 million verdict in favor of Zunum Aero Inc. (“Zunum”), a now-defunct aerospace...more

Holland & Knight LLP

Shady Days: SEC Secures Another Insider Trading Stat on Shadow Trading Theory

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The U.S. District Court for the Northern District of California on May 30, 2024, approved a settled final judgment against technology company Arista Networks' former chairman and CEO, Andreas "Andy" Bechtolsheim based on...more

Seyfarth Shaw LLP

DraftKings Obtains Restrictive Covenant and Trade Secret Injunction Against Former Executive

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All bets are off in a Boston-based dispute between DraftKings Inc. and one of its former vice presidents. On April 30, 2024, the District of Massachusetts granted DraftKings a twelve-month preliminary injunction preventing...more

Parker Poe Adams & Bernstein LLP

North Carolina Trade Secret Protections Laws Do Not Apply to Out-of-State Conduct

Like most states, North Carolina law protects employers from misappropriation of confidential and proprietary trade secrets. Last month, the North Carolina Business Court (a division of the Superior Court that handles complex...more

Fish & Richardson

What the FTC’s Ban on Noncompete Agreements Means for Trade Secrets

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On April 23, the Federal Trade Commission (FTC) issued a final rule that would ban the use of noncompete agreements in most employment contracts nationwide. Hailed by the Commission as a measure to promote competition,...more

Paul Hastings LLP

SEC Wins Trial Involving First-Ever Shadow Trading Case

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On April 5, 2024, a federal jury in the Northern District of California found defendant Matthew Panuwat liable for insider trading in the Securities and Exchange Commission’s (“SEC”) first-ever case involving the so-called...more

McDermott Will & Emery

Fifth Circuit Rejects Recruiter’s Trade Secret Misappropriation and Contract Defenses

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The US Court of Appeals for the Fifth Circuit affirmed a district court’s decision finding trade secret misappropriation and breach of contract based on a recruiter’s improper use of confidential client information. Counsel...more

Hahn Loeser & Parks LLP

New Insider Trading Precedent: Time To Update Insider Trading Policy

On April 5, 2024, the Securities and Exchange Commission (the “SEC”) obtained a verdict after an eight-day civil jury trial in SEC v. Matthew Panuwat (“SEC v. Panuwat”), in which the SEC alleged shadow insider trading, in...more

BakerHostetler

The SEC Secures Major Trial Victory in Its First ‘Shadow Trading’ Insider Trading Enforcement Action – Securities and Exchange...

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On Friday, April 5, a California federal jury found a former Medivation executive liable for insider trading under the novel liability theory of “shadow trading,” following an eight-day trial and less than three hours of...more

BakerHostetler

Trade Secret Litigation: The Power of Protection

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If, as the saying goes, an ounce of prevention is worth a pound of cure, then the insight provided by our Trade Secret Litigation team is weighty counsel that clients are wise to heed. Our attorneys’ understanding of the...more

Sheppard Mullin Richter & Hampton LLP

Mind Your Audience: Disclosure of Confidential Information to AI Programs Can Give Rise to Trade Secret Misappropriation Claims

AI tools such as Chat GPT and Otter are becoming common programs that employees use to help streamline business tasks. Otter, for example, is an AI Meeting Assistant that automatically transcribes and summarizes meetings in...more

Foley & Lardner LLP

SEC v Panuwat: The SEC’s Novel “Shadow Trading” Insider Trading Case Goes to Trial 

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Insider trading is a concept that most people are generally familiar with. In its simplest form, it involves a corporate insider trading in securities of his or her corporation on the basis of material nonpublic information...more

Proskauer - Minding Your Business

Arbitrator Awards Company $155M for Competitor’s Use of Its Confidential Information

An American Arbitration Association arbitrator recently awarded Black Knight, Inc. (BK) $155M stemming from Pennymac Loan Services, LLC’s (Pennymac) alleged use of its mortgage-loan servicing platform to develop its own...more

Mitchell, Williams, Selig, Gates & Woodyard,...

Can You Get a Court to Stop Someone from Sharing Customer/Client Lists?

Can you get a court to stop someone from sharing customer/client lists in Arkansas? As explained in this blog post, it depends. But often the question is debatable and hiring an attorney experienced in unfair competition...more

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