`
`UNITED STATES DISTRICT COURT
`EASTERN DISTRICT OF NEW YORK
`PIPING ROCK HEALTH PRODUCTS, LLC,
`
`
`Plaintiff,
`
`
`-against-
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`GERARDO CORTES and the DOE COMPANY,
`
`
`Defendants.
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`
`
`COMPLAINT
`
`Case No.:
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`
`
`
`
`
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`Plaintiff, PIPING ROCK HEALTH PRODUCTS, LLC (“Plaintiff” or the “Company” or
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`“Piping Rock”), by and through its attorneys, Jaspan Schlesinger LLP, as and for its complaint
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`against the defendant, GERARDO CORTES (“Cortes”) and an unidentified defendant company
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`doing business in California, the DOE COMPANY (the “Doe Company”, collectively, with Cortes
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`“Defendants”), respectfully alleges the following:
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`PRELIMINARY STATEMENT
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`1.
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`This action seeks emergency and permanent equitable relief and damages from
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`Defendants for Cortes’s misappropriation of Plaintiff’s trade secrets, unfair competition, breach of
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`fiduciary duty, tortious interference with prospective economic advantage, and breaches of
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`multiple contracts.
`
`2.
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`In the days before he resigned from the Company in April 2022, Cortes uploaded
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`and transferred to himself hundreds of documents containing confidential and proprietary
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`information belonging to Piping Rock (the “Customer List and Confidential Files”).
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`3.
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`These Customer List and Confidential Files included, inter alia, millions of
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`customer contact information and marketing materials, which Piping Rock has spent over a decade
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`and tens of millions of dollars compiling and maintaining.
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`
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`Case 2:22-cv-02557 Document 1 Filed 05/04/22 Page 2 of 25 PageID #: 2
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`4.
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`Upon his hiring, Cortes was provided and executed multiple agreements detailing
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`Piping Rock’s exacting confidentiality policies and attended trainings in which those policies were
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`reviewed in depth. Cortes was, therefore, aware that maintaining the confidentiality of the
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`Company’s trade secrets was of the utmost importance to Piping Rock, and that he had strict
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`confidentiality and fiduciary obligations to the Company as a result thereof.
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`5.
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`Before his departure, Cortes admitted to his supervisor that he was leaving Piping
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`Rock to work remotely for a company located in California, whose identity is currently unknown
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`but is referred to herein as “the Doe Company.” Upon information and belief, Cortes has shared
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`or intends to share Piping Rock’s confidential and proprietary information with the Doe Company.
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`6.
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`Piping Rock discovered that Cortes had misappropriated its Customer Lists and
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`Confidential Files through its regular practices and policies, as detailed in the Piping Rock
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`Associate Handbook (the “Associate Handbook”, attached hereto as Exhibit A).
`
`7.
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`Upon information and belief, Cortes stole Piping Rock’s confidential trade secrets
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`for his own benefit and for that of his new employer, the Doe Company, and to compete unfairly
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`and wrongfully against Piping Rock.
`
`8.
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`By this Complaint, Piping Rock seeks an order from the Court prohibiting
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`Defendants from using or disseminating Piping Rock’s confidential information, prohibiting
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`Defendants from soliciting any of Piping Rock’s customers named in the Customer List and
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`Confidential Files, directing Defendants to return or destroy all information and things, and any
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`copies thereof, that Cortes misappropriated from Piping Rock, compensatory damages, punitive
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`damages, and any other available relief as further described below.
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`2
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`Case 2:22-cv-02557 Document 1 Filed 05/04/22 Page 3 of 25 PageID #: 3
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`9.
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`Defendant, Gerardo Cortes, is a natural person who resides at 87 Cedarhurst
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`PARTIES
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`Avenue, Selden New York 11784.
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`10.
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`Defendant, the Doe Company, is an unidentified company doing business in
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`California.
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`11.
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`Plaintiff, Piping Rock is a limited liability company organized and existing under
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`the laws of New York. Its principal place of business is located at 3900 Veterans Memorial
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`Highway, Suite 200, Bohemia, New York 11716.
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`JURISDICTION AND VENUE
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`12.
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`The Court has jurisdiction over Plaintiff’s claims pursuant to 18 U.S.C. § 1836(c)
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`and 18 U.S.C. § 1030 because Plaintiff brings claims pursuant to the Defense of Trade Secrets Act
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`of 2016 and the Computer Fraud and Abuse Act of 1986, respectively.
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`13.
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`Venue is appropriate in the Eastern District of New York as Piping Rock and Cortes
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`reside within the district and the primary acts of misconduct occurred therein.
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`14.
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`Venue is also appropriate in the Eastern District of New York by the agreement of
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`the parties. Piping Rock and Cortes agreed in the applicable Employee Confidentiality and
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`Proprietary Rights Agreement that “[a]ny action or proceeding by either Party to enforce this
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`Agreement shall be brought only in any state or federal court located in Suffolk County in the state
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`of New York. The Parties hereby irrevocably submit to the exclusive jurisdiction of such courts
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`and waive the defense of inconvenient forum to the maintenance of any such action or proceeding
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`in such venue.”
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`3
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`Case 2:22-cv-02557 Document 1 Filed 05/04/22 Page 4 of 25 PageID #: 4
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`STATEMENT OF FACTS
`
`Background
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`15.
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`Piping Rock, founded in 2011, is a global retailer of natural products, including,
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`inter alia, vitamins, supplements, exotic herbs and holistic oils.
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`16.
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`Piping Rock is a family company spanning three generations, with the stated goal
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`of “mak[ing] superior quality vitamins, supplements and natural products affordable and easy to
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`access for everyone.”
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`17.
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`Piping Rock’s business is dependent on the development and maintenance of its
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`customer relationships. Piping Rock keeps records of its customers and all data associated with
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`those customers in a detailed Customer List.
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`18.
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`The Customer List, which contains data from Piping Rock customers from at least
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`2015 until now, is an asset that has taken Piping Rock over a decade to build.
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`19.
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`Piping Rock’s Customer List currently contains email addresses and other
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`information for over 4.8 million customers.
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`20.
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`Piping Rock has spent tens of millions of dollars developing this Customer List
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`over the last decade.
`
`21.
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`For example, from January 1, 2021 to December 31, 2021, Piping Rock spent at
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`least $5,962,127.35 to acquire 322,616 customers and to keep 312,651 customers.
`
`22.
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`Just in March 2022, it cost Piping Rock more than $25 to acquire each individual
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`new customer. Piping Rock spent $345,984 to acquire 13,447 customers. That is, $25.67 per new
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`customer.
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`
`
`4
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`Case 2:22-cv-02557 Document 1 Filed 05/04/22 Page 5 of 25 PageID #: 5
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`23.
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`Therefore, the Customer List that is the subject of this lawsuit is one of Piping
`
`Rock’s most valuable assets, and the confidentiality of the information contained therein is
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`essential to the development of the Company’s business.
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`Piping Rock Hires Cortes in February 2018
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`24.
`
`25.
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`Piping Rock hired Cortes in February 2018 as an e-mail marketing manager.
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`Cortes was a highly compensated employee, receiving an annual salary of nearly
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`$92,000 at the time he quit in April 2022.
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`26.
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`Cortes’s job duties included managing Piping Rock’s email marketing efforts to
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`Piping Rock’s millions of customers, including creating the emails that the customers would
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`receive, analyzing which marketing campaigns were effective, and managing the Company’s
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`customer relationships.
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`27.
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`In order to fulfill his job duties, Piping Rock provided Cortes access to its Customer
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`List and other confidential information. However, such access was always limited to the fulfillment
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`of his specified job duties or as otherwise expressly authorized by Piping Rock.
`
`28.
`
`Cortes’s access to Piping Rock’s Customer List and other confidential information
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`was further governed by the Company’s policies and procedures detailed in the Piping Rock
`
`Associate Handbook and the Employee Confidentiality and Proprietary Rights Agreement (the
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`“Confidentiality Agreement”, attached hereto as Exhibit B).
`
`Cortes Signs and Is Bound by the Associate Handbook
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`29.
`
`At or around the time of his hiring, Cortes received the Associate Handbook. (See
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`Exhibit A). Cortes acknowledged his receipt of the Associate Handbook and his agreement to
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`abide by it. (Id.)
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`
`
`5
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`Case 2:22-cv-02557 Document 1 Filed 05/04/22 Page 6 of 25 PageID #: 6
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`30.
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`The Associate Handbook detailed the Company’s personnel policies and expected
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`standards of conduct.
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`31.
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`One of these policies was the Company’s “Business Ethics and Conduct” policy.
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`This policy requires all employees “to conduct business in accordance with the letter, spirit and
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`intent of all relevant laws and to refrain from any illegal, dishonest or unethical conduct.” It further
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`states that “[c]ompliance with the Company’s Code of Business Conduct is the responsibility of
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`every Associate.” (Exhibit A at 8).
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`32.
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`The Associate Handbook prohibits “[s]tealing, misusing, destroying or removing
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`from company premises without authorization any company property or the property of any
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`employee.” (Id. at 27).
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`33.
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`The Associate Handbook further provides that “no Associate will disclose any
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`documents outside the Company with any person outside the Company which will impact the
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`Company’s integrity and will have any conflict of interest with Company. In the event if anyone
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`is found involved thereabout, disclosure will be seriously dealt with.” (Id. at 28).
`
`34.
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`The Associate Handbook also details the Company’s “Confidentiality Policy.” (Id.
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`at 29).
`
`35.
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`The Confidentiality Policy defines “Company property” as “not only tangible
`
`property such as desks and computer terminals, but also intangible property such as information
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`and data on those computer terminals.” It notes that,
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`[o]f particular importance are proprietary information and confidential
`information. Proprietary information includes all information obtained by
`Company Associates during the course of their work . . . . Confidential
`information is any company information that is not generally known to the
`public or our industry. Customer lists and files, production information,
`personnel files, employee medical information, computer records, financial
`and marketing data, formulas and trade secrets are examples of confidential
`information.
`
`
`
`6
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`
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`Case 2:22-cv-02557 Document 1 Filed 05/04/22 Page 7 of 25 PageID #: 7
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`
`
`* * *
`
`
`You may not disclose or use proprietary or confidential information except
`as your job requires.
`
`
`* * *
`
`Although we wish to respect Associates’ privacy, there may be times when
`in order to prevent or investigate claims of harassment, theft or other
`wrongdoing, an authorized company representative may monitor phone
`calls, regular mail and electronic mail (e-mail).
`
`
`* * *
`
`
`In the managing the operations of our business, certain staff members
`become privy to sensitive information about the business, our customers,
`and our Associates. This information must remain confidential both
`internally (within the company) and externally (outside the company,
`including spouses and family members). Do not discuss it with others
`beyond what is required to perform your job unless you are given specific
`authority to do so.
`
`
`* * *
`
`
`All Associates are required to comply with this policy. Any violations will
`result in disciplinary action up to and including discharge.
`
`(Id. at 29-33) (emphasis added).
`
`
`36.
`
`The Associate Handbook also contains a “Conflicts of Interest” policy. This policy
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`prohibits any activity if it will, inter alia, “[c]reate a conflict with the business interests and
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`purposes of the company.” (Id. at 35).
`
`37.
`
`The Associate Handbook also contains an “Electronic Communications” policy.
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`This policy provides
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`Company Property
`Electronic equipment, including but not limited to computers, telephones,
`pagers, printers and fax machines, used or owned by the company and all
`information stored on this equipment is company property. Company
`reserves the right to review and disclose any information sent, received or
`stored on this equipment. For example, the company may review and
`
`
`
`7
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`
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`Case 2:22-cv-02557 Document 1 Filed 05/04/22 Page 8 of 25 PageID #: 8
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`disclose any electronic mail (e-mail), voice mail, computer passwords, fax
`documents and computer files found on company equipment.
`
`Confidentiality
`Much of the information stored in the company’s electronic equipment is
`confidential; disclosure can only be made at the company’s discretion, any
`unauthorized disclosure to outsiders or coworkers is prohibited . . . . The
`company’s policy on confidentiality (see page [29]) applies to information
`and communications on all company electronic equipment.
`
`Business Use
`During work hours, you may use the company’s electronic equipment only
`for business related purposes . . . . Personal use of the company electronic
`equipment is restricted to after regular work hours and must not interfere or
`conflict with business use. You should not expect that any information on
`company equipment is private.
`
`(Exhibit A at 36) (emphasis in original).
`
`38.
`
`Finally, the Associate Handbook makes plain that the Company may conduct
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`searches of company property or of personal property that an employee brings onto company
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`premises in order to “stop theft” and “protect the interests of the company,” amongst other things.
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`(Id. at 39).
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`39.
`
`Cortes reviewed the Associate Handbook, and, on February 26, 2018, signed an
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`acknowledgment stating
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`I have received a copy of the Company Associate Handbook. I understand
`that it is my obligation to understand all of the rules, policies, terms and
`conditions and to abide by them. If I have any questions regarding these
`policies, I will ask my Supervisor or the human resources director. I
`understand and agree that employment at Company is “at will.” I also
`understand and agree that any provision of this handbook may be amended
`or revised at any time by Company with or with notice.
`
`
`(Id., at 46) (emphasis in original).
`
`
`40.
`
`The Associate Handbook referenced herein remained in effect throughout the
`
`course of Cortes’s employment.
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`
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`
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`8
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`Case 2:22-cv-02557 Document 1 Filed 05/04/22 Page 9 of 25 PageID #: 9
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`Cortes Signs and Is Bound by the Employee
`Confidentiality and Proprietary Rights Agreement
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`At the time of his hiring, Cortes was also provided with Piping Rock’s
`
`41.
`
`Confidentiality Agreement. (See Exhibit B).
`
`42.
`
`In the Confidentiality Agreement, Cortes acknowledged that
`
`during the course of employment by the Employer, he will have access to
`and learn about confidential, secret and proprietary documents, materials
`and other information, in tangible and intangible form, of and relating to the
`Employer and its businesses and existing and prospective customers,
`suppliers,
`investors and associated
`third parties
`(“Confidential
`Information”). The Employee further understands and acknowledges that
`this Confidential Information and the Employer’s ability to reserve it for the
`exclusive knowledge and use of the Employer is of great competitive
`importance and commercial value to the Employer, and that improper use
`or disclosure of the Confidential Information by the Employee might cause
`the Employer to incur financial costs, loss of business advantage, liability
`under confidentiality agreements with third parties, civil damages and
`criminal penalties.
`
`(Exhibit B, § 1(a)) (emphasis in original).
`
`
`43.
`
`The Confidentiality Agreement defines “Confidential Information” broadly.
`
`Confidential Information under the agreement
`
`includes, but is not limited to, all information not generally known to the
`public, in spoken, printed, electronic or any other form or medium, relating
`directly to or indirectly to: business processes, practices, methods, policies,
`plans, publications, documents, research, operations, services, strategies,
`techniques, agreements, contracts, terms of agreements, transactions,
`potential transactions, negotiations, pending negotiations, know-how, trade
`secrets, computer programs, computer software, applications, operating
`systems, software design, web design, work-in-process, databases, manuals,
`records and reports, articles, systems, material, sources of material, supplier
`identity and information, vendor identity and information, customer
`identity and information, financial information, results, accounting
`information,
`accounting
`records,
`legal
`information, marketing
`information, advertising
`information, pricing
`information, credit
`information, design information, payroll information, staffing information,
`personnel
`information, developments,
`internal controls,
`security
`procedures, graphics, drawings, sketches, sales
`information, costs
`formulae, product plans, designs, ideas, inventions, unpublished patent
`
`
`
`9
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`Case 2:22-cv-02557 Document 1 Filed 05/04/22 Page 10 of 25 PageID #: 10
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`applications, original works of authorship, discoveries, specifications, and
`manufacturing information, of the Employer or its businesses or any
`existing or prospective customer, supplier, investor or other associated third
`party, or of any other person or entity that has entrusted information to the
`Employer in confidence.
`
`(Id) (emphasis added).
`
`44.
`
`In the Confidentiality Agreement, Cortes then agreed
`
`(i) to treat all Confidential Information as strictly confidential; (ii) not to
`directly or indirectly disclose, publish, communicate or make available
`Confidential Information, or allow
`it
`to be disclosed, published,
`communicated or made available, in whole or part, to any entity or person
`whatsoever (including other employees of the Employer) not having a need
`to know and authority to know and use the Confidential Information in
`connection with the business of the Employer and, in any event, not to
`anyone outside of the direct employ of the Employer . . . ; and (iii) not to
`access or use any Confidential Information, and not to copy any
`documents, records, files, media or other resources containing
`Confidential Information, or remove any such documents, records, files,
`media or other resources from the premises or control of the Employer,
`except as required in the performance of the Employee’s authorized
`employment duties to the Employer or with the prior consent of the
`Employer, in each instance (and then, such disclosure shall be made only
`within the limits and to the extent of such duties or consent).
`
`
`(Id., § 1(b)) (emphasis added).
`
`45.
`
`The duration of the confidentiality obligations detailed in the Confidentiality
`
`Agreement are ongoing, commencing “immediately upon the Employee first having access to such
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`Confidential Information” and continuing “during and after his employment by the Employer until
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`such time as such Confidential Information has become public knowledge other than as a result of
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`the Employee’s breach of this Agreement . . . .” (Id., § 1(c)).
`
`46.
`
`The Confidentiality Agreement also contains a section regarding Security. In that
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`section, Cortes agreed “not to access or use any Facilities and Information Technology Resources
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`except as authorized by Employer” and “not to access or use any Facilities and Information
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`
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`10
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`Case 2:22-cv-02557 Document 1 Filed 05/04/22 Page 11 of 25 PageID #: 11
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`Technology Resources in any manner after the termination of the Employee’s employment by the
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`Employer, whether termination is voluntary or involuntary.” (Id., § 3(a)).
`
`47.
`
`Cortes agreed to certain Exit Obligations in the Confidentiality Agreement, namely
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`that he would
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`provide or return to the Employer any and all Employer property, including
`. . . manuals, reports, files, books and records of any king, compilations,
`work product, e-mail messages, texts, recordings tapes, disks, thumb drives
`or other removable storage devices, hard drives, data and all Employer
`documents and materials belonging to the Employer and stored in any
`fashion, including but not limited to those that constitute or contain any
`Confidential Information or Work Product, that are in the possession or
`control of the Employee . . . [and] delete or destroy all copies of any such
`documents and materials not returned to the Employer that remain in the
`Employee’s possession or control, including those stored on any non-
`Employer devices, networks, storage locations and media in the Employee’s
`possession or control.
`
`(Id., § 3(b)).
`
`48.
`
`Finally, Cortes agreed that,
`
`[i]n the event of a breach or threatened breach by the Employee of any of
`the provisions of this Agreement . . . the Employer shall be entitled to seek,
`in addition to other available remedies, a temporary or permanent injunction
`or other equitable relief against such breach or threatened breach from any
`court of competent jurisdiction, without the necessity of showing any actual
`damages or that monetary damages would not afford an adequate remedy,
`and without the necessity of posting any bond or other security.
`
`
`(Id., § 7).
`
`
`49.
`
`Cortes and a representative of Plaintiff executed the Confidentiality Agreement on
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`February 26, 2018.
`
`50.
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`Plaintiff has at all times complied with its obligations under the Confidentiality
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`Agreement.
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`
`
`
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`
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`11
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`Case 2:22-cv-02557 Document 1 Filed 05/04/22 Page 12 of 25 PageID #: 12
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`After Approximately Four Years of Employment, Cortes Resigns from Piping Rock
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`51.
`
`Cortes worked as an e-mail marketing manager for the Company for slightly more
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`than four years. During that time, he had access to Confidential and Proprietary information, as
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`defined in the Associate Handbook and Confidentiality Agreement. This information included
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`Piping Rock’s valuable Customer List and Confidential Files.
`
`52.
`
`Cortes was at all relevant times aware that he was authorized to access this
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`information only in the course of his duties as an e-mail marketing manager for Piping Rock.
`
`53.
`
`Cortes understood that this access was limited and could not be transferred to any
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`third party or, indeed, to himself for any use beyond those specifically detailed by the Company.
`
`54.
`
`On April 7, 2022, Cortes resigned from Piping Rock via e-mail to his direct
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`supervisor, Egor Zhogov. Cortes provided two weeks’ notice such that his last day at Piping Rock
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`was April 21, 2022. (See April 7, 2022 Resignation Email, Exhibit C).
`
`55.
`
`In a subsequent oral conversation with his supervisor, Cortes indicated that he was
`
`leaving Piping Rock for a remote marketing position with a California company, the Doe
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`Company.
`
`Piping Rock Discovers Cortes Misappropriated Its Customer
`List and Other Confidential Documents
`
`In the days following Cortes’s resignation, Piping Rock discovered that he had
`
`56.
`
`misappropriated its Customer List, along with a substantial number of other, confidential files.
`
`57.
`
`As part of its practices and procedures, as detailed in the Associates Handbook,
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`Piping Rock conducted a review of the electronic files accessed by Cortes prior to his departure.
`
`58.
`
`During this review, Piping Rock’s IT specialists determined that Cortes had
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`uploaded over 250 documents and files to WeTransfer.com (“WeTransfer”) from his workstation
`
`at Piping Rock in the two days preceding his resignation.
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`
`
`12
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`Case 2:22-cv-02557 Document 1 Filed 05/04/22 Page 13 of 25 PageID #: 13
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`59. WeTransfer is an Internet-based computer file transfer service that allows
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`individuals and companies to transfer large files electronically.
`
`60.
`
`The documents and files that Cortes uploaded to WeTransfer include, without
`
`limitation, Piping Rock’s Customer List and Confidential Files.
`
`61.
`
`Upon information and belief, this was done at the specific instance and request of
`
`the Doe Company.
`
`62.
`
`Piping Rock’s IT specialists then discovered that, once Cortes uploaded the
`
`documents to WeTransfer, he transferred those documents to his own personal email address.
`
`63.
`
`In addition to uploading these files to WeTransfer, Cortes also copied these files to
`
`a thumb drive, which he never returned to the Company.
`
`64.
`
`The information contained in these files—namely, customer lists and related
`
`marketing information—are the crux of Piping Rock’s direct to consumer business, which Piping
`
`Rock has developed over the last decade, at a cost of millions of dollars. This information will
`
`permit the Doe Company to use email to market its products directly to the Piping Rock’s four
`
`million plus customers.
`
`65.
`
`As is evident through the Company’s extensive confidentiality protections
`
`described above, it is essential that Piping Rock and its employees keep these customer lists and
`
`related marketing information confidential. This is because such proprietary information would
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`dramatically decrease in value if made publicly available, particularly to Piping Rock’s
`
`competitors like the Doe Company.
`
`66.
`
`Upon information and belief, Cortes has provided or intends to provide the
`
`Customer List and Confidential Files to the Doe Company for Defendants’ mutual benefit.
`
`
`
`
`
`
`13
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`Case 2:22-cv-02557 Document 1 Filed 05/04/22 Page 14 of 25 PageID #: 14
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`AS AND FOR A FIRST CAUSE OF ACTION
`Violation of the Defend Trade Secrets Act of 2016 (18 U.S.C. § 1836(b))
`(All Defendants)
`
`Plaintiff repeats and realleges the allegations made above as if fully set forth herein.
`
`67.
`
`68.
`
`Piping Rock’s Customer List and Confidential Files, which are not available to the
`
`public, are business records that constitute protectible trade secrets.
`
`69.
`
`Cortes, at the specific instance and request of the Doe Company, misappropriated
`
`Piping Rock’s trade secrets when he uploaded the Customer List and Confidential Files to his
`
`personal flash drive on April 21, 2022 and to the WeTransfer file sharing platform and transferred
`
`those documents to his own, personal computer or other electronic device.
`
`70.
`
`Upon information and belief, the Doe Company received, or is about to receive, the
`
`misappropriated Customer List and Confidential Files from Cortes.
`
`71.
`
`Piping Rock’s Customer List and Confidential Files relate to its products, which
`
`are used in interstate and foreign commerce. Piping Rock’s business is international, and its
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`Customer List includes information regarding customers across the United States and abroad.
`
`72.
`
`Piping Rock has, at all times, taken reasonable measures to keep their Customer
`
`List and Confidential files secret. These measures include, without limitation, requiring all
`
`employees with access to the trade secrets to (i) enter into the Confidentiality Agreement; (2)
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`acknowledge Piping Rock’s policies and procedures detailing in the Associates Handbook; and
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`(iii) attend trainings in which these issues are discussed extensively, both during the initial
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`onboarding process and on a regular and/or annual basis.
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`73.
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`Piping Rocks’ Customer List and Confidential Files derive their own independent
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`economic value due to not being generally known to, and not being readily ascertainable through
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`proper means by another person.
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`14
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`Case 2:22-cv-02557 Document 1 Filed 05/04/22 Page 15 of 25 PageID #: 15
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`74.
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`Plaintiff is entitled to an emergency order allowing law enforcement to seize
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`Defendants’ computers and personal electronic devices containing the misappropriated Customer
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`List and Confidential Files, and any electronic or paper copies thereof.
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`75.
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`Piping Rock is also entitled to an injunction against Defendant Doe Company rom
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`utilizing any information contained in the Customer List and Confidential Files.
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`76.
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`Other equitable relief beyond seizure would be inadequate because Cortes would
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`evade, avoid, or otherwise not comply with such an order.
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`77.
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`Plaintiff will suffer immediate and irreparable injury if the seizure is not ordered.
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`Plaintiff’s Customer List is at the heart of its business, and Plaintiff derives tens of millions of
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`dollars in income as a result of its customer relationships. Defendants’ use of that information will
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`irreparably diminish the value of the Customer List, which Plaintiff has spent over a decade and
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`significant resources developing. Moreover, Plaintiff spends significant sums of money every
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`month to acquire and maintain these customers in order to derive its revenue.
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`78.
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`In the alternative, Plaintiff is entitled to a temporary restraining order and
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`preliminary injunction enjoining Defendants from utilizing Plaintiff’s trade secrets and requiring
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`them to return the trade secret documents and records to Plaintiff, and to delete all copies thereof,
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`wherever these may be, in electronic or any other format. Plaintiff will suffer irreparable harm, as
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`described above, in the event the Court denies its application for a temporary restraining order and
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`preliminary injunction.
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`79.
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`As a direct and proximate result of Defendants’ misappropriation of Plaintiff’s trade
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`secrets, Piping Rock has suffered damages in an amount to be determined at trial, but not less than
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`$5,000,000.
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`15
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`Case 2:22-cv-02557 Document 1 Filed 05/04/22 Page 16 of 25 PageID #: 16
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`AS AND FOR A SECOND CAUSE OF ACTION
`Violation of the Computer Fraud and Abuse Act of 1986 (18 U.S.C. § 1030)
`(Against Cortes)
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`Plaintiff repeats and realleges the allegations set forth above as if fully set forth
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`80.
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`herein.
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`81.
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`Cortes intentionally accessed computers—including his own work computer as
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`well as the computer server upon which Plaintiff stored its trade secrets—without the authority to
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`do so and for his own personal gain.
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`82.
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`Cortes was simply not entitled to access the Customer Lists and Confidential Files
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`at the time he obtained that information. This is in accordance with the Company’s computer use
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`policy and procedures, which forbids employees from accessing particular files, folders and
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`databases for personal use, and especially for the purposes of transferring the information to the
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`Doe Company.
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`83.
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`Cortes obtained the Customer List and Confidential Files from Plaintiff’s computer
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`records.
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`84.
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`Plaintiff has and continues to suffer irreparable harm as a result of Defendant’s
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`misappropriation of these trade secrets and is therefore entitled to injunctive relief on this count.
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`85.
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`As a direct and proximate result of Defendant’s misappropriation of Plaintiff’s trade
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`secrets, Piping Rock has suffered damages in an amount to be determined at trial, but not less than
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`$5,000,000.
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`
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`16
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`Case 2:22-cv-02557 Document 1 Filed 05/04/22 Page 17 of 25 PageID #: 17
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`AS AND FOR A THIRD CAUSE OF ACTION
`Misappropriation of Trade Secrets
`(Against All Defendants)
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`Plaintiff repeats and realleges the allegations made above as if fully set forth herein.
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`Piping Rock’s Customer List and Confidential Files, which were not available to
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`86.
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`87.
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`the public, constitute protectible trade secrets.
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`88.
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`Defendants are using the information contained in Piping Rock’s Customer List
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`and Confidential Files for their own, personal benefit, in violation of the duties Cortes owed to his
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`employer.
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`89.
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`Cortes obtained access to Piping Rock’s Customer List and Confidential Files by
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`improper means, including, but not limited to, uploading, and transferring the documents to his
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`personal computer via the WeTransfer file-sharing platform, to a thumb drive, and, subsequently
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`transferring or preparing to transfer those documents to the Doe Company.
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`90.
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`Plaintiff has and continues to suffer irreparable harm as a result of Defendants’
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`misappropriation of these trade secrets and is therefore entitled to injunctive relief on this count.
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`91.
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`As a direct and proximate result of Defendants’ misappropriation of Plaintiff’s trade
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`secrets, Piping Rock has suffered damages in an amount to be determined at trial.
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`AS AND FOR A FOURTH CAUSE OF ACTION
`Unfair Competition
`(All Defendants)
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`Plaintiff repeats and realleges the allegations made above as if fully set forth herein.
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`Defendants misappropriated the fruits of Plaintiff’s labor when Cortes transferred
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`92.
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`93.
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`to himself Plaintiff’s Customer List and Confidential Files in advance of his termination from the
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`Company, and, upon information and belief, transferred or prepared to transfer that information to
`
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`17
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`Case 2:22-cv-02557 Document 1 Filed 05/0