A California state jury awarded Propel Fuels, Inc. $604.9 million in damages after finding Phillips 66 Company liable for trade secret misappropriation. Propel Fuels, Inc. v. Phillips 66 Co., Case No. 22CV007197 (Cal. Oct. 16, 2024). The jury found defendant willfully misappropriated the trade secrets after conducting due diligence
$30 Million Message: Jury Awards Substantial Punitive Damages for Trade Secret Theft
A nearly decade-long legal battle in the U.S. District Court for the Northern District of Illinois recently concluded with a significant jury verdict, underscoring the potentially severe consequences of trade secret theft claims. In Sonrai Systems, LLC v. Anthony M. Romano and The Heil Co. d/b/a Environmental Solutions Group…
Tenth Circuit Decision Highlights Distinction Between Traditional Non-Compete and Forfeiture-for-Competition
By Seth Safra & Jake Lee on
In Lawson v. Spirit AeroSystems, Inc., the U.S. Court of Appeals for the Tenth Circuit upheld the forfeiture of certain stock awards for violating a covenant not to compete. Like the Seventh Circuit in LKQ Corp. v. Rutledge(which applied Delaware law), the Tenth Circuit concluded that, under…
Tenth Circuit Affirms Dismissal of Trade Secret Claims for Lack of Particularity and Secrecy
By Steven J. Pearlman, Scott Tan & Jake Lee on
On April 22, 2025, the Tenth Circuit affirmed summary judgment in favor of a sales manager and his new employer on claims under the Defend Trade Secrets Act (“DTSA”), the Oklahoma Uniform Trade Secrets Act (“OUTSA”), and common law claims for misappropriation of confidential business information and civil conspiracy, which…
Georgia Federal Court Denies TRO and Motion to Dismiss in Trade Secrets Case
By Steven J. Pearlman & Connor Riser on
On March 27, 2025, in Stimlabs LLC v. Griffiths, the U.S. District Court for the Northern District of Georgia ordered a former executive, Sarah Griffiths, to face claims related to her alleged theft of Stimlab’s trade secrets under the Defend Trade Secrets Act (“DTSA”) and the Georgia Trade Secrets…
Eleventh Circuit Revives Trade Secret Misappropriation Claim in Long-Running Litigation
By Steven J. Pearlman & Brenna McLean on
On April 4, 2025, the Eleventh Circuit reversed the U.S. District Court for the Northern District of Alabama’s ruling dismissing Alabama Aircraft Industries’ (“AAI”) trade secret misappropriation claim against Boeing, thereby allowing AAI to pursue unjust enrichment damages in addition to amounts previously recovered on its breach of contract…
Court Rejects DTSA Claim Over Inadequate Efforts to Protect Alleged Trade Secrets
By Steven J. Pearlman & Scott Tan on
On March 13, 2025, the U.S. District Court for the Eastern District of New York dismissed a trade secret misappropriation claim under the Defend Trade Secrets Act (“DTSA”), finding that the employer failed to plead it had taken reasonable measures to maintain the secrecy of its alleged trade secrets.
In…
District Court Dismisses Trade Secrets Claim Lacking Explicit Expectation of Privacy
By Steven J. Pearlman & Brenna McLean on
On February 20, 2025, the U.S. District Court for the Western District of Pennsylvania dismissed a trade secret misappropriation claim for failing to identify explicit language establishing an expectation of privacy to the protected information.
Plaintiffs in Vertical Bridge REIT LLC v. Everest Infrastructure Partners Inc., Case No. 23-1017…
Seventh Circuit Decision Highlights Distinction Between Traditional Non-Compete and Forfeiture-for-Competition
By Scott Tan, Steven J. Pearlman & Seth Safra on
A recent decision by the U.S. Court of Appeals for the Seventh Circuit allowed an employer to enforce a “forfeiture-for-competition” against a former plant manager. The Court explained that, under Delaware law, forfeiture-for competition is not subject to the same reasonableness standard as a traditional non-compete clause. The case is…
Jury Awards $452 Million After Trade Secrets Trial
By Steven J. Pearlman & Nicole Sockett on
On December 3, 2024, a U.S District Court for the District of Massachusetts jury awarded Plaintiff Insulet Corporation $452 million in compensatory and punitive damages after finding Defendants willfully misappropriated Insulet’s trade secrets. Insulet Corp. v. EOFlow Co. Ltd., et al., Case No. 1:23-cv-11780 (D. Mass.)
Insulet is a…