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Goldberg Kohn Defeats Preliminary Injunction Motion Representing Weldcote Metals, Inc.

March 8, 2019

David Morrison, a principal in the firm's Litigation and Labor & Employment groups, and Meredith Kirshenbaum, an associate in the firm's Litigation and Labor & Employment Groups, represented Weldcote Metals, Inc. and the individual defendants in the case of Abrasic90, Inc. v. Weldcote Metals Inc., et al.. The Northern District of Illinois ruled that Abrasic90 was not entitled to preliminary injunctive relief after its president of 18 years resigned and took with him files containing what Abrasic90 contended was trade secret information about its pricing, customers, and suppliers.  In representing the defendants in this "bet the company" case, in which Abrasic90 sought an injunction that "would stop Weldcote's entry into the abrasive business in its tracks," Morrison and Kirshenbaum established overwhelming record evidence that Abrasic90 failed to maintain the information at issue as a trade secret.  Based on the record evidence, the Court ruled that the plaintiff's "data security was so lacking that it is difficult to identify the most significant shortcoming, but the company’s failure to require those with access to its supposed trade secrets to enter into non-disclosure and confidentiality agreements has to be counted among the most fundamental omissions by the company."  The Court concluded that Abrasic90 failed to show that it was likely to succeed on the merits of its claims under any legal theory that could serve as the basis for a preliminary injunction.  Accordingly, the motion for preliminary injunction was denied. 

This article was published in Wolters Kluwer Employment Law Daily on March 7, 2019 and is reprinted with permission.

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