Trade Secret Litigation: What Happens When Key Employees Go?

Trade Secret Litigation: What Happens When Key Employees Go? 2

Morgan LewisAlyssa Kovach & Larry Turner 

Within the span of two weeks, Mr. Smith and Mr. Wilson, two top managers from your $2 billion corporation, resign. Both managers had complete, unfettered access to your corporation’s trade secrets and confidential information, including pricing and staffing formulas, clients’ requests for proposals, and bid information.

One month earlier, Mr. Smith and Mr. Wilson incorporated a competitor company with a covert business partner. In the time leading up to their resignations, the managers purchased new cell phones and set up new email addresses in the competitor business’s name, and used hard drives and flash drives to extract documents from your corporation’s computers. Up until the time they resigned, Mr. Smith and Mr. Wilson sent emails from your corporation’s servers to their covert business partner that contained confidential information about your key clients.

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