HNRK Retrieves Misappropriated Algorithms

December 6th, 2013

HNRK’s expertise in restrictive covenant enforcement was illustrated this past month after a large French bank’s firewall security system detected a research analyst’s transmissions of confidential documents that contained trading strategies and market analysis algorithms to his wife’s personal and business email addresses.

The analyst, who worked in the bank’s Park Avenue, New York, office had signed an employment agreement containing comprehensive confidentiality, no-raiding and garden leave/non-compete provisions (the “Employment Agreement”). Within minutes after our retention to enforce those covenants, we assembled a team to quickly work with the client to gather the relevant facts and efficiently draft the complaint and motion papers necessary to obtain fast emergency injunctive relief to prevent the dissemination and destruction of the misappropriated trade secret materials.

Based on the strength of our papers (admittedly, we had good facts), a New York Supreme Court justice, after the briefest of arguments, granted the bank a temporary restraining order and a preliminary injunction ordering, among other things, the preservation of the stolen documents and their return, plus third-party forensic examinations of all of the defendants’ home computers, laptops,

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iPads and iPhones—an effort coordinated by HNRK.

Last, because the Employment Agreement provided for the reimbursement of the bank’s legal fees, we were successful in negotiating for enhanced protections against further breach of the Employment Agreement as well as the reimbursement of a significant portion of the cost of the bank’s enforcement action.