The firm Hedgeye Risk Management LLC was recently granted an injunction against former managing director Darius Dale for stealing the investment research house's financial models before resigning to start his own competing business.
Federal Judge Andrew L Carter Jr found that the firm had "established a likelihood of success on the merits" regarding its claims against Dale for misappropriating Hedgeye's trade secrets. Judge Carter granted the motion for a preliminary injunction, enjoining Dale from further accessing and using Hedgeye's trade secrets and other confidential information, including source models and customer lists.
According to the complaint filed in the United States District Court for the Southern District of New York on 26 April 2021, Dale:
- copied confidential source models;
- took screenshots of spreadsheets;
- downloaded client contact lists; and
- created an account on a file hosting service that contained the same file and folder names as certain Hedgeye files and folders on his company-issued laptop.
He then began to pitch his competing business immediately upon his resignation. Based on information Hedgeye learned after filing suit, the complaint was amended to add claims against Dale's business partner, Steven Lamar, who created a new business entity called 42 Macro LLC in order to collaborate with Dale in this unlawful conduct.
For further information on this topic please contact Eric A Prager at Venable LLP's New York Office by telephone (1 212 218 2236) or email ([email protected]). Alternatively, contact Antonia I Stabile at the firm's San Francisco office by telephone (1 415 653 3750) or email ([email protected]). The Venable LLP website can be accessed at www.venable.com.