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E-Discovery Giants Feud Over Trade Secrets in SDNY

Wednesday, June 7, 2017   (0 Comments)
Posted by: Deja Miller
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Extract from Gabe Friedman's article "E-Discovery Giants Feud Over Trade Secrets in SDNY"

For a sense of how competitive the fast-growing e-Discovery services sector has become, consider the accusations flying in a federal lawsuit in Manhattan between one vendor and its former top salesmen.

DTI Global, which provides e-Discovery services such as document review, is accusing its rival, LDiscovery, of dangling a total of $24 million in potential bonus payments to entice four of its top salesman to leave and join their company, and to allegedly bring major clients with them.

In its complaint, DTI levels a raft of claims against the four sales employees and LDiscovery, including breach of noncompete agreements, conspiracy and misappropriation of trade secrets. Many of the claims hinge on accusations that in June 2016, Chris Weiler, president and CEO of LDiscovery, began communicating with the salesmen about leaving DTI; and that the four salesmen subsequently downloaded critical information about DTI’s clients, such as their purchase history, their pricing needs and other preferences, which they kept when they all departed on Jan. 17, 2017, according to the complaint.

Read the full article here

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