#trade secrets

#trade secrets

Although Alexi has not yet formally responded to the lawsuit, its founder and CEO Mark Doble told me yesterday afternoon that he denies any wrongdoing and that he believes the lawsuit is based on a misunderstanding of the original licensing agreement that came to light during Clio's recent closing of its purchase of vLex, which had merged with Fastcase in 2023.

The lawsuits, which centered on claims that two employees stole trade secrets from one rival and passed them on to another, rocked the alternative data world. These firms have grown in scale and revenue as hedge funds and asset managers use their datasets to find differentiated intel to inform bets. Yet, it remains a relatively small industry where everyone knows everyone.

NetApp has filed a federal lawsuit against former Chief Technology Officer Jón Thorgrímur Stefánsson. The company alleges that during his employment, he used confidential information to establish a competing startup, which was acquired by rival VAST Data shortly after his departure. According to NetApp, the fact that VAST Data bought the startup Red Stapler shortly after its founding does not change the fact that VAST is not accused of involvement. The claims focus exclusively on the actions of Stefánsson and a few former colleagues.

Congress enacted the CFAA in 1986 as a criminal law statute in response to the nascent issue of computer "hacking." 18 U.S.C. § 1030. The private cause of action was added a decade later. The Act prohibits unauthorized access or access that exceeds authorized access to computers. The CFAA defines "exceeds authorized access" as accessing "a computer with authorization and [using] such access to obtain . . . information in the computer that the accesser is not entitled to obtain," while leaving "unauthorized access" undefined.

Deel's countersuit against Rippling paints the company and its CEO as motivated by jealousy, alleging a campaign to harm Deel's reputation amid accusations of corporate espionage.