Disputes over alleged misappropriation of trade secrets and claimed misuse of confidential information often unfold at critical inflection points — after failed acquisitions, dissolutions of joint ventures and leadership changes — and demand fast, experienced, focused legal experience. Munger, Tolles & Olson’s deep bench of experienced trade secret lawyers are as comfortable in the courtroom prosecuting or defending trade secret cases as they are behind the scenes confidentially counseling clients on strategies to protect intellectual property and resolve disputes.

Trade Secret & Employee Mobility

Guarding intellectual property in a fast-moving competitive landscape.

Trade Secret & Employee Mobility

Overview

MTO represents companies at the crossroads of innovation and competition, where intellectual property is at risk. From employees moving between rival companies or strategic deals that hinge on information security, we advise clients on protecting trade secrets, enforcing confidentiality agreements and managing employee transitions with both legal precision and business practicality. We also protect clients accused of improperly acquiring or using competitors’ trade secrets, winning in the courtroom and working behind the scenes to stop potential problems before they get that far.

Our Chambers-ranked practice regularly handles high-stakes litigation, obtains temporary restraining orders, opposes preliminary injunctions and handles trials and confidential arbitrations related to trade secret misappropriation, non-competition agreements and breaches of fiduciary duty. We also counsel clients on risk management during onboarding and offboarding, product development, due diligence, joint ventures and acquisition discussions.

MTO works to safeguard some of the world’s most valuable proprietary assets while also protecting against efforts to shut down innovation and mobility. Whether we’re litigating a complex trade secret case for a Fortune 100 company or advising a fast-growing startup on its hiring protocols, we deliver clear, strategic guidance rooted in a deep understanding of business and the law.

Featured acheivement.

Carolyn Hoecker Luedtke Interviewed in IAM on Race Car Trade Secrets and the Importance of Contractual Protections to Safeguard Them

Munger, Tolles & Olson Partner Carolyn Hoecker Luedtke was interviewed in a recent article titled, “Lamborghini facing bumpy road ahead in steering wheel software trade secret suit,” published by IAM. The article examines a new trade secret lawsuit against Automobili Lamborghini S.p.A. and its American subsidiary brought by former partner, Prema Engineering.

Experience

While some of our most successful representations are necessarily confidential, involving out-of-court resolutions or confidential arbitrations, we frequently engage in vigorous representations for our clients in trade secret and employee mobility litigation. Our representations include:

Michael Hermalyn, an executive with Fanatics, in a high-profile dispute with his former employer, DraftKings, in one of the first cases to test the enforceability of a noncompete covenant under California’s new statute prohibiting noncompetes regardless of whether the agreement was signed and the employment maintained outside of California.
Applied Materials, Inc. in:
- Winning a ruling that a civil trade secrets lawsuit with multiple defendants should be tried as one unified proceeding, to avoid the risk of conflicting rulings in arbitration and court.
- Obtaining voluntary dismissal of litigation filed by ASM America, Inc., which sought to enjoin their former employee from leading an R&D center for Applied.
First Student, Inc., the nation’s largest school bus company, in winning a motion to dismiss and motion challenging the adequacy of a trade secret disclosure in a trade secret case brought by a competitor.
Abbott Laboratoriesin pursuing lawsuits against three former employees for downloading confidential documents upon their departure and for breach of non-solicitation agreements.
Air Lease Corporationin defending against and resolving allegations of trade secret theft, aiding and abetting breach of fiduciary duty, and unfair competition brought by International Lease Finance Corporation (IFLC) relating to the formation of Air Lease by Steven Udvar-Hazy after he retired from IFLC.
Amgen, in bringing a trade secret action in state court against a competitor and a former Amgen executive for misappropriating trade secrets related to Amgen’s groundbreaking oncology drug Neulasta®. We achieved a favorable settlement, including a multi-year royalty, the day before opening arguments in a lengthy jury trial.
Ten-X, an online real estate marketplace, in obtaining a preliminary injunction and then later a cash settlement, a public apology, and certain ongoing restrictions against Commercial Real Estate Exchange (CREXi) and its CEO in litigation alleging breach of contract, breach of fiduciary duty, and misappropriation of trade secrets.
Fortress Investment Group, in obtaining a complete defense verdict in a five-week bench trial in a lawsuit filed by a life settlement investment fund seeking more than $200 million in damages and bringing claims of misappropriation of trade secrets, breach of fiduciary duty, fraud, unfair competition and breach of contract.
ABC, in successfully defeating an injunction sought by CBS of a new reality show that it claimed incorporated trade secrets for how to make a compelling reality show.
A venture capital firm in obtaining a dismissal with prejudice of trade secret, CFAA, RICO, and related claims arising from its investment in a portfolio company.
DoubleLine Capital LP and certain of its founders, including CEO Jeffrey Gundlach, in winning a $66.7 million jury verdict in favor of Gundlach against his former employer, Trust Co. of the West (TCW), on his cross-complaint. TCW originally brought suit claiming breach of fiduciary duty, trade secret theft and tortious interference in connection with a large-scale departure of employees to DoubleLine Capital after Mr. Gundlach was fired. The jury awarded no damages on TCW’s complaint against DoubleLine Capital and the individual defendants.
Fortune 100 Technology Company in defending claims that it knowingly received stolen trade secrets from a technology partner in a joint venture.
Snack food start-up in successfully obtaining dismissal of claims that it used allegedly stolen formulas from an established snack-food company.
Checkr and Hone Data LLC, in settling trade secret litigation brought against them after MTO discovered the alleged secret, a compilation of codes, was publicly available on the internet.