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You are viewing ARCHIVED CONTENT released online between 1 April 2010 and 24 August 2018 or content that has been selectively archived and is no longer active. Content in this archive is NOT UPDATED, and links may not function.Extract from article by Gabe Friedman
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.
It is not the first time that DTI’s subsidiary, Epiq Systems, has appeared in federal court for a noncompete and trade secrets dispute.
In 2012, one of Epiq’s subsidiaries, Encore Intermediate Holdco, squared off in Arizona federal court with a competitor, Modus, which had hired three of its former employees. Encore claimed the employees and Modus had breached a noncompete agreement and had violated the state’s trade secrets laws. That case settled in 2014 on undisclosed terms, after a judge dismissed many of the claims, according to the docket.
Read the complete article at E-Discovery Giants Feud Over Trade Secrets in SDNY
Additional Reading
- eDiscovery is Big Business – And Worth Fighting Over For Providers (Kelly Twigger)
- Transparency, Dirty Laundry, and Gatekeepers: DTI vs. LDiscovery Lawsuit (Greg Buckles)
