Stephen E. Fox

Recent trade secret theft/employee mobility litigation examples
Inevitable disclosure and trade secret theft. As co-lead counsel, brought action against former senior-level management employee of Fortune 100 semiconductor company after he abruptly resigned to take a similar position with a competing company, alleging probable disclosure of trade secrets. Obtained TRO. Case pending.

Trade secret theft. On behalf of Fortune 50 computer/printer company, served as co-lead counsel in bringing multi-million dollar suit against former high-level employees who, while still employed by the client, covertly organized and began operating a competing business venture using the client’s resources, contacts and trade secrets to steal product designs, market analyses and other confidential and proprietary business information. After prevailing in jurisdictional dispute, case settled.

Inevitable disclosure. As lead counsel, brought action against 9 employees and their new employer after they abruptly resigned from a Fortune 100 semiconductor design and manufacturing company to join a competing company, alleging trade secret theft and contract violations. Obtained temporary and permanent injunctions against the new employer and the former employees, prohibiting them from contacting certain customers, using client's trade secrets, and soliciting or hiring client's employees.

Trade secret theft. On behalf of a leading provider of payment processing software used by banks and retailers to manage automatic teller machine and check transactions, served as lead counsel in bringing suit against former President and another former executive who started a competing firm and began to hire design engineers with whom they had worked. Obtained a TRO at a contested hearing and, after engaging in several months of discovery, settled on terms which included restrictions against doing business with client's customers and from hiring client's employees.

Inevitable disclosure/non-compete. As lead counsel, brought action for one of country’s largest suppliers of temporary and permanent placement of health care practitioners against prominent sales manager who joined competing placement firm. Obtained TRO and temporary injunction against former employee, enforcing non-compete restrictions and prohibiting solicitation of former customers and placement of client’s personnel.

Declaratory judgment. As lead counsel, represented an employee and her new employer in a dispute in which former employer threatened to sue the employee for stealing trade secrets and violating a non-compete agreement. Before former employer could file suit in its home state, initiated legal action in Texas, seeking a declaration that the non-compete agreement was unenforceable. Because of the risk of an adverse ruling, the former employer agreed to waive enforcement of the non-compete restriction.

Inevitable disclosure. As lead counsel, brought action on behalf of Fortune 100 semiconductor design and manufacturing company against a former employee/scientist who was intimately involved in the development of the company’s state of the art and industry-leading digital processing technology. After scientist resigned under suspicious circumstances and began working for a competitor, obtained a TRO, enjoining scientist from working for competitor. Within days, scientist resigned senior leadership position with competitor and returned to work for client.

Non-compete/trade secret theft. As lead counsel, represented an international information technology consulting firm in litigation against its former President and several of his senior management staff who resigned to form a competing venture. Employed computer forensics to demonstrate that the executive staff had undertaken efforts to form venture several months before leaving client company, while downloading gigabytes of client’s confidential information. After obtaining TRO, case settled less than 4 weeks after its initiation.

Cyberlaw/trade secret theft. As lead counsel, obtained TRO on behalf of Fortune 100 semiconductor company against a former employee who created several Internet websites containing confidential information and video clips. Thereafter, used computer forensics to obtain a permanent injunction prohibiting employee from using any trade secrets and from posting certain company information on the Internet.

Employee solicitation. As lead counsel, obtained TRO on behalf of software firm engaged in development of payment processing software against former employees, including former President, who founded competing company, barring them from soliciting client’s employees and using client’s confidential information, leading to favorable settlement.

Non-compete/trade secret theft. As lead counsel, defended two employees who left medical rehab device company to form competing venture. Through discovery and legal analysis and briefing, obtained settlement permitting employees to work for competing venture and to solicit former customers.

Non-compete/trade secret theft. As lead counsel, obtained TRO on behalf of the country’s largest professional service company involved in assisting consumer packaged goods manufacturers and retailers in sales, marketing, and information technology against a former senior sales executive who went to work for client’s biggest competitor in California. After learning of the TRO in Texas, the employee countersued in California, seeking an injunction to enjoin enforcement of the TRO. Defeated the countersuit and settled the lawsuit on very favorable terms.

Inevitable disclosure. As lead counsel, obtained TRO on behalf of a global temporary, contract and permanent staffing services company in bringing suit against former employee who left to begin working for a competing staffing company. After conducting a 5 day temporary injunction hearing, court entered injunction, prohibiting employee from calling on former customers. Thereafter, the case was resolved on favorable terms.

Employee solicitation. As lead counsel, defended the country’s largest direct marketing company for supplemental educational supplies to school districts in a lawsuit brought by one its competitors which alleged that client company had tortuously interfered with employment contracts between it and some employees who left to work for client company. After the court denied competitor’s request for temporary injunction, the parties took 60 depositions throughout the country in 3 months. Thereafter, competitor gave up the fight and agreed to be bought by client.

Non-compete/trade secret theft. As lead counsel, obtained TRO on behalf of the country’s largest automobile leasing company against two salesmen who resigned to work for its biggest competitor. Through a little known technique rarely used in non-compete litigation, obtained a court order authorizing the sheriff to enter the competitor’s premises and seize materials in the possession of the former employees. These "smoking gun" materials enabled client to settle the lawsuit on favorable terms, including an agreement by the competitor not to hire any more of client’s employees.

Declaratory judgment. As lead counsel, defended the country’s leading independent computer hardware maintenance and support services firm in a declaratory judgment lawsuit brought by a former employee who went to work for a competitor and, thereafter, sought to invalidate a non-compete covenant in his employment agreement. After mounting a vigorous defense of the enforceability of the non-compete covenant, the case settled on favorable terms, including the validation of and an agreement by the employee to abide by the non-compete covenant.

Recent discrimination, FLSA, and commercial litigation examples
FLSA Collective Action. Lead trial counsel in FLSA collective action brought by a Fortune 100 semiconductor manufacturing company's current and former employees who claim they are not properly compensated for time spent donning and doffing cleanroom attire and walking to and from their workstations within the company's cleanroom facilities.

FLSA Collective Action. Lead trial counsel in an FLSA collective action brought by model home sales employees of regional home builder who claim they were misclassified as outside sales persons.

FLSA Collective Action. Lead trial lawyer in an FLSA collective action brought by for-profit college system's outside sale representatives who claimed that their positions were misclassified as exempt. After a California federal court denied class certification status on the basis that the sales representatives were exempt under the FLSA regulations as "outside salepersons," the Texas plaintiff dismissed her collective action allegations, saving millions of dollars in alleged overtime pay. Thereafter, court granted summary judgment on plaintiff's claim that the employer had willfully misclassified her position. Soon thereafter, case was resolved on favorable terms.

Breach of contract. Lead trial lawyer in defense of Fortune 100 semiconductor firm in million dollar lawsuit brought by former vendor of quartz materials used in manufacturing process. Plaintiff claims that it entered into fiduciary relationship with client based on the parties' course of dealing. When vendor's business collapsed because of market conditions and poor management, plaintiff sued for breach of contract and fiduciary duty.

Race. Obtained summary judgment on behalf of Fortune 500 telecommunications firm in lawsuit filed by black employee who alleged that he was laid off in a reduction in force because of his race.

Race/Class Action. Defeated class certification in race discrimination lawsuit filed against one of the country’s leading hardware and software consulting companies.

Age, Retaliation. Obtained summary dismissal of age discrimination and retaliation claims against one of the country’s largest distributors of computer component products and parts asserted by former salesman who was laid off in a reduction in force.

FLSA. Obtained arbitration award rejecting and dismissing employee’s breach of contract, defamation and FLSA claims against leading designer and manufacturer of industrial, high speed bread, bun and beverage equipment and systems.

Race/Class Action. Defeated class certification in race discrimination lawsuit filed against media conglomerate.

Gender, Sexual Harassment. Obtained summary judgment for Atlanta-based staffing services company on claims brought by former female employee who alleged gender discrimination and sexual harassment. Affirmed on appeal by Fifth Circuit Court of Appeals.

Gender, Equal Pay, Retaliation. Obtained summary dismissal of gender discrimination, retaliation, Equal Pay Act, and negligent hiring claims asserted against one of the country’s largest privately-held hospitality companies by female employee laid off in reduction in force.

Age, Religion. Obtained summary judgment in lawsuit accusing Hartford-based insurance company of age and religious discrimination asserted by older worker who was fired for ignoring requests to stop posting Biblical verses in e-mail messages.