News & Analysis as of

Misappropriation Theft

Adams and Reese LLP

What are the Best Practices for Internal Controls and the Warning Signs of Embezzlement?

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President Ronald Reagan once said, “Trust, but verify,” echoing a Russian proverb to describe the relationship moving forward with the Soviet Union. The saying loosely translates into proceeding cautiously when someone is...more

WilmerHale

2024 Trade Secret Update: Whistleblower Protections in the Northern District of California

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WilmerHale lawyers advise clients on every aspect of trade secret law from contracts to complex litigation. Below please find a short update on an important development in trade secret whistleblower protections in the...more

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

What do you have to Show to Prove that Someone Misappropriated Trade Secrets?

What must you show to prove that someone misappropriated trade secrets? The Arkansas Uniform Trade Secrets Act provides that misappropriation of trade secrets can be shown in one or more of three ways: acquisition or physical...more

Kaufman & Canoles

K&C Sports & Entertainment Law Weekly Roundup - April 2024

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The NCAA and the Power 5 conferences have told a CA federal judge that the “highly varied and diverse ways” schools compensated athletes after the 2021 Alston Supreme Court decision make it implausible to certify the class...more

Proskauer - Minding Your Business

Court Finds Access to Botox Trade Secrets and Similarity of Competitor Product Supported Inference of Trade Secrets...

Proving access to and use of trade secrets are core elements in a trade secrets misappropriation case. Recent rulings in a trade secrets action filed by Allergan against its competitor Revance Therapeutics (“Revance”)...more

Proskauer - Life Sciences

Alleged Theft of Drug Pricing Trade Secrets Could Cost Both Victim and Thief

Life Sciences is an area ripe for trade secrets misappropriation litigation. In recent news, Merz Pharmaceuticals, LLC filed a lawsuit under the North Carolina Uniform Trade Secrets Act alleging that its former director of...more

Vondran Legal

Arizona trade secret law

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Most states have a law that protects trade secrets. California, for example, has CUTSA (California Uniform Trade Secret Act). Arizona has the Arizona Uniform Trade Secrets Act ("AUTSA") found in chapter 4 of title 44 of the...more

Venable LLP

Long-Awaited Protections for Intellectual Property Could Have Significant Implications for Federal Government Contractors

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The Protecting American Intellectual Property Act of 2022—passed by the Senate on December 20, 2022 and signed by the President on January 5, 2023—aims to protect American IP interests by imposing sanctions on certain foreign...more

Patton Sullivan Brodehl LLP

California Supreme Court: Penal Code Section 496(c) Can Apply To Business Disputes

In a long-awaited opinion — Siry Investment, L.P. v. Farkhondehpour — the California Supreme Court held that California Penal Code section 496 can apply to a business dispute. The opinion resolves a split of authority among...more

Wiley Rein LLP

Losses Reported by Property Insurer’s Customers Constitute “Claims” Under Insurer’s E&O Policy

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The United States District Court for the Western District of Louisiana, applying Louisiana law, has held that losses reported by customers of an insurance company, for which the customers had no coverage due to the alleged...more

Patton Sullivan Brodehl LLP

Penal Code Remedies for LLC Misappropriation?

Can the sledgehammer remedies of California Penal Code section 496 — treble (triple) damages and attorney fees — apply for misappropriation of an LLC’s property? The California Supreme Court is set to answer that question...more

Eversheds Sutherland (US) LLP

Cryptocurrency misappropriation, hacking, theft and fraud on target for banner year

According to one blockchain and cryptocurrency security firm, this year is on pace to be the second highest in cryptocurrency theft, hacking and fraud, with January through May 2020 already seeing $1.36 billion stolen in...more

Patton Sullivan Brodehl LLP

Courts Split Over Application of Penal Code to Claims of LLC Misappropriation

Almost one year ago, in Switzer v. Wood, California’s Fifth Appellate District held that an LLC manager or member participating in the theft of the LLC’s property could face liability under Penal Code section 496 — a statute...more

Foodman CPAs & Advisors

Can you identify a Misappropriation Scheme?

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Misappropriation is the use of property or funds of another person for an unauthorized purpose.  In misappropriation, the perpetrator steals or misuses an organization’s belongings and resources; usually without force.  The...more

Orrick - Trade Secrets Group

In a Blockbuster Economic Espionage Act Prosecution, an Attempt by the Government to Hide the Ball?

An ongoing, headline-grabbing trade secret theft prosecution against a Chinese spy is also quietly presenting a, say, disquieting attempt by prosecutors to stretch the law on what it is required to plead and prove. On the...more

Patton Sullivan Brodehl LLP

Can the Criminal Law Concept of “Receiving Stolen Property” Apply to LLC Disputes?

In the LLC Jungle, allegations of “misappropriation” are common.  LLC members and managers sometimes improperly divert the LLC’s funds and property for their own personal use.  That bad behavior usually leads to claims of...more

Seyfarth Shaw LLP

California Appellate Court Rules Publication of Trade Secrets, Even Without Owner Consent, Eviscerates Protection

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It is axiomatic that in order for information to be considered a trade secret, it must have been kept secret. But what if the trade secret is disclosed without the owner’s consent? Such was the issue in Intellisoft, Ltd. v....more

Orrick - Trade Secrets Group

Court Upholds One Year in Prison for Theft of non-Trade Secrets

A federal district court judge in Chicago sentenced Robert O’Rourke, a former employee of iron bar manufacturer Dura-Bar, to one year and one day in prison last week for stealing trade secrets. Well, not quite. O’Rourke was...more

Robins Kaplan LLP

Financial Daily Dose 8.28.2019 | Top Story: British PM to Suspend Parliament in Bid to Push Through Brexit

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Man-of-the-people PM Boris Johnson is set to as the Queen to suspend parliament for 5 weeks in an attempt to squeeze the time for opposition to the October 31st Brexit deadline, a move that’s prompting concerns about a...more

Spilman Thomas & Battle, PLLC

Trade Secret Misappropriation and Employee Fiduciary Breach in ASML v. XTAL Results in Large Judgement

On May 3, 2019, following a jury verdict rendered last November, a Santa Clara, California court entered a final judgment for $845 million in favor of semiconductor maker, ASML, in its suit against rival, XTAL, for stealing...more

Farella Braun + Martel LLP

3 Trends in Criminal Trade Secret Prosecution

Criminal trade secret prosecutions are on the rise nationwide and in the Northern District of California, especially cases relating to alleged theft by Chinese nationals and entities. According to a 2017 report by the White...more

Patterson Belknap Webb & Tyler LLP

AOL Outlaw Must Bear the Burden of Proving Who Pays the Price

On January 9, 2018, the Second Circuit (Kearse, Cabranes, Wesley) rejected a request by ex-AOL Inc. employee Jason Smathers to junk the restitution component of his sentence, which requires him to recompense the online...more

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

401(k) Plan Sponsor Steals Assets To Support Country Club Life

One of my favorite lines from Seinfeld is when George Costanza gets a job where Elaine works at Pendant Publishing. He’s fired for having sex in the office with the cleaning woman. George pardons ignorance, asking whether it...more

Mintz - Intellectual Property Viewpoints

The Defend Trade Secrets Act: A Powerful New Tool for Employers

Trade secrets provide significant value for American companies. Take, for example, the formula for Coca-Cola. The exact formula for the popular softdrink is a closely guarded secret, and Coca-Cola’s exclusive ability to make...more

Seyfarth Shaw LLP

What To Do About Employee Thieves—Catch Them If You Can!

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Seyfarth Synopsis: When employee theft occurs, employers must be cautious in investigating, avoiding self-help, and in deciding if and how to terminate the offending employee. Companies work hard to hire trustworthy...more

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