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 were brought by his former employer, Double Eagle Alloys, Inc. (“Plaintiff”). Double Eagle Alloys, Inc. v. Hooper, 24-5089 (10th Cir. Apr 22, 2025).

Plaintiff alleged that the former employee misappropriated files containing pump shaft quality (“PSQ”) specifications (internal standards for specialty metal products), along with pricing data and customer drawings.  The district court granted summary judgment in favor of Defendants, dismissing Plaintiff’s DTSA and OUTSA claims for failing to identify the alleged trade secrets with sufficient particularity and for not differentiating protected trade secrets from unprotected information. The court also dismissed Plaintiff’s common law misappropriation claim due to insufficient evidence of secrecy and consequently dismissed the civil conspiracy claim for lack of an underlying tort. 

On appeal, the Tenth Circuit agreed with the district court, finding there was insufficient evidence that the allegedly stolen information qualified as a trade secret under the DTSA.  The Tenth Circuit held that Plaintiff had failed to establish these elements, noting that much of the information had been publicly disclosed or shared with third parties, and that Plaintiff had not demonstrated what efforts it took to maintain the secrecy of the information.

The Tenth Circuit rejected the OUTSA claim for the same reason.  Plaintiff grouped the allegedly misappropriated files into broad categories—namely, PSQ, pricing information, and customer drawings—but offered little detail to distinguish what, if anything, qualified for protection.  Some documents were sourced from customers, some were shared online, and others reflected information available from competitors.  According to the court, Plaintiff relied on affidavits containing conclusory statements asserting confidentiality, but provided no evidence identifying specific trade secrets or explaining how the information was secured or economically valuable.  

This ruling illustrates how courts approach trade secret claims built on broadly described information and minimal factual support.

Print:
Email this postTweet this postLike this postShare this post on LinkedIn
Photo of Steven J. Pearlman Steven J. Pearlman

Steven J. Pearlman is a partner in the Labor & Employment Law Department, where he is Head of the Restrictive Covenants, Trade Secrets & Unfair Competition Group and Co-Head of the Whistleblowing & Retaliation Group.

Employment, Restrictive Covenant & Trade Secret, and Whistleblower

Steven J. Pearlman is a partner in the Labor & Employment Law Department, where he is Head of the Restrictive Covenants, Trade Secrets & Unfair Competition Group and Co-Head of the Whistleblowing & Retaliation Group.

Employment, Restrictive Covenant & Trade Secret, and Whistleblower Practice. Steven’s national practice focuses on defending companies in federal and state courts and in arbitration fora against the full spectrum of employment-related claims, including claims of executives; restrictive covenant violations; employee raiding; theft of trade secrets; whistleblower retaliation under the Sarbanes-Oxley Act, the Dodd-Frank Act and similar state laws; and wage-and-hour violations, including class, collective and PAGA actions.

Steven has successfully handled trials in multiple jurisdictions; prevailed in seeking and defending against applications for temporary restraining orders and preliminary injunctions; defended one of the largest Illinois-only class actions in the history of the federal courts in Illinois (over 90k putative class members); and prevailed following his oral arguments before federal and state appellate courts. He brings his litigation experience (beginning in 1998) to bear in counseling clients to minimize risk and avoid or prepare for success in litigation.

Investigations. Reporting to boards of directors, their audit committees, CEOs and in-house counsel, Steven conducts sensitive investigations and has the unusual experience of testifying in federal court in connection with investigations. His investigations have involved complaints of sexual harassment involving C-suite officers; systemic violations of employment laws and company policies; and fraud, compliance failures and unethical conduct.

Thought Leadership and Accolades. Steven was named Lawyer of the Year for Chicago Labor & Employment Litigation in the 2023 edition of The Best Lawyers in America. He is a Fellow of the College of Labor and Employment Lawyers. Chambers has reported:

  • Steven is “one of the best in the country and has a lot of experience”;
  • Steven is as an “outstanding lawyer” who is “very sharp and very responsive,” a “strong advocate,” and an “expert in his field”;
  • He is thoughtful, attentive and demonstrates an acute understanding of matters top of mind for business-minded general counsel; and
  • “He is someone who can navigate the twists and turns of litigation without difficulty.”

Steven was 1 of 12 individuals selected by Compliance Week as a “Top Mind.” Earlier in his career, he was 1 of 5 U.S. lawyers selected by Law360 as a ”Rising Star Under 40” in the area of employment law and 1 of “40 Illinois Attorneys Under Forty to Watch” selected by Law Bulletin Publishing Company. Steven is a U.S. Library of Congress Burton Award Winner for “Distinguished Legal Writing.”

Steven was appointed to Law360’s Employment Editorial Advisory Board and selected as a Contributor to Forbes.com. He has appeared on Bloomberg News (television and radio) and Yahoo! Finance, and is often quoted in leading publications such as The Wall Street Journal. The U.S. Chamber of Commerce has engaged Steven to serve as lead counsel on amicus briefs to the U.S. Supreme Court and federal circuit courts of appeal.

In 2024, Steven received the Excellence in Pro Bono Service Award from the United States District Court for the Northern District of Illinois and the Chicago Chapter of the Federal Bar Association.

Photo of Scott Tan Scott Tan

Scott Tan is an associate in the Labor & Employment Law Department.  Scott represents employers in a variety of matters in federal and state court, arbitrations and state and local administrative proceedings.  His practice encompasses a wide range of labor and employment matters…

Scott Tan is an associate in the Labor & Employment Law Department.  Scott represents employers in a variety of matters in federal and state court, arbitrations and state and local administrative proceedings.  His practice encompasses a wide range of labor and employment matters, including employment discrimination, retaliation, breach of contract, whistleblower claims, restrictive covenants, and wage & hour claims.  Scott also counsels clients on a diverse array of employment matters, including accommodations requests, reductions-in-force, pay equity, wage and hour issues, and compliance with federal, state, and local laws.  Scott’s recent work has involved advising and representing clients across industries such as financial services, sports, news and media, healthcare, legal services, and real estate, in matters ranging from single and multi-plaintiff lawsuits to class and collective actions.

Scott has an active pro bono practice and advises non-profit organizations on employee separations and other employment issues.  He recently secured a favorable judgment in New York state court on behalf of a charitable foundation.  Scott also co-leads Proskauer’s Moot Court Program, where he introduces local high school students to appellate advocacy and coaches them to participate in an annual competition against other New York City high schools.

Scott received his J.D. from UCLA School of Law, where he served on the Moot Court Honors Board and worked as a research assistant for Professor Jennifer Mnookin and Professor Hiroshi Motomura.

Photo of Jake Lee Jake Lee

Jake Lee attended the Paul M. Hebert Law Center, Louisiana State University, where he was an Issue Editor for the Louisiana Law Review. During law school, Jake served as an extern to the Honorable John W. deGravelles at the United States District Court…

Jake Lee attended the Paul M. Hebert Law Center, Louisiana State University, where he was an Issue Editor for the Louisiana Law Review. During law school, Jake served as an extern to the Honorable John W. deGravelles at the United States District Court for the Middle District of Louisiana. Prior to attending law school, Jake attended the University of Georgia.