New York Times Says FBI Has Been Investigating St. Louis Cardinals for Stealing Trade Secrets of Houston Astros

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The New York Times is now reporting that FBI investigators “have uncovered evidence that St. Louis Cardinals officials broke into a network of the Houston Astros that housed special databases the team had built . . . .”  According to the report,  “[i]nternal discussions about trades, proprietary statistics and scouting reports were compromised.”  Also according to the report, the FBI believes that Cardinals officials gained access to the Astros’ database by using a list of passwords associated with Astros general manager Jeff Luhnow dating to his tenure with the Cardinals from 2003…

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Duke Radiologist Files Class Action Suit Alleging Duke University Health System Conspiracy with UNC Health System Not to Poach Each Other’s Medical Faculty

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This blog is about more than just employee departures that involve allegations of trade secret theft – it is also about litigation involving employee departures and related issues.  On June 9th, the well-respected national law firm Lieff Cabraser filed a complaint in the United States District Court for the Middle District of North Carolina on behalf of a Duke Health System radiologist alleging that Duke University Health System’s “senior administrators and deans entered into express agreements to eliminate or reduce competition among them for skilled medical labor.”  The complaint further…

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Former Goldman Sachs Programmer, and Alleged High-Frequency Code Thief, Sergey Aleynikov Convicted in New York State Court

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The legal travails of code programmer Sergey Aleynikov are like none this student of trade secret litigation has ever seen.  This long, strange trip on Mr. Aleynikov’s existentialist legal nightmare began with his arrest at the Newark airport.  He was on his way to Chicago as part of the pre-hire process at Teza Technologies, a high-frequency trading firm.  It is undisputed that he had in his possession some of the computer source code for the high-frequency trading platform at Goldman Sachs.  He helped design the Goldman Sachs platform and his…

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Iowa Appellate Court Sends Trade Secrets Case To Trial in Custom Machine Equipment Reverse-Engineering Case

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Deimco is a Tampa-based company that designs and manufactures custom finishing equipment.  Pella Corporation makes and sells windows and doors.  Pella asked Deimco to build custom equipment for Pella.  Deimco did so but did not formally obtain an NDA contract from Pella. Deimco’s quotation request form contained language that Deimco owned all custom modifications made to standard equipment.  Additionally, Deimco’s quotation and initial drawings included a legend that indicated the drawing was proprietary to Deimco and it required Pella to endorse that drawing and Pella did.  Deimco then built the…

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This Fight Isn’t About Who Keeps the Billy Joel Albums: Maryland Divorce Firm Served With Trade Secret Misappropriation Suit Alleging $350 Million in Damages

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Now THIIS is one we’ve never seen before at Sullivan’s Trade Secrets.  Law360 is reporting that a Maryland-based divorce firm has been sued in federal court in Maryland for allegedly stealing and copying a computer program designed and owned by a couple of companies owned and operated by Donald Bailey Sr. Who is Donald Bailey Sr.?!?  Apparently the soon-to-be-ex-husband of Mrs. Bailey and Mrs. Bailey is represented in the divorce action by Joseph, Greenwald and Laake’s Stephen Friedman. What is Mr. Friedman allegedly doing with this computer program?  Well, according to…

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Scalia Argues SEC Rule 21F-17 Enforcement Action Imperil Corporate Trade Secrets

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Eugene Scalia, a well-respected attorney at the esteemed Gibson, Dunn & Crutcher law firm, has penned an interesting and thought-provoking Op-Ed piece in Monday’s Wall Street Journal.  The piece, linked below and titled “Blowing the Whistle on the SEC’s Latest Power Move”, argues that the SEC’s interpretation of Dodd-Frank generated SEC Rule 21F-17 generates a slippery slope where corporate trade secrets could be transmitted to the government en masse by a self-proclaimed whistle-blower.  This, argues Mr. Scalia, represents an unacceptable risk to corporate secrets. According to the SEC, KBR (the large…

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