Case 1:20-cv-08159-GBD Document 1 Filed 10/01/20 Page 1 of 26
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`UNITED STATES DISTRICT COURT
`SOUTHERN DISTRICT OF NEW YORK
`-------------------------------------------------------------x
`INVESTMENT SCIENCE LLC,
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`Plaintiff,
`
`-against-
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`VERIZON MEDIA, INC., OATH INC., and
`VERIZON COMMUNICATIONS INC.,
`
`1:20-cv-8159 ( )
`
`COMPLAINT
`
`JURY TRIAL
`DEMANDED
`
`Defendants.
`-------------------------------------------------------------x
`Plaintiff Investment Science LLC, by its attorneys Albert PLLC, for its complaint against
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`the defendants Verizon Media, Inc., Oath Inc., and Verizon Communications Inc., alleges as
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`follows:
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`PARTIES
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`1.
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`Plaintiff Investment Science LLC (“Investment Science”) is a Delaware limited
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`liability company, with principal place of business located in Long Beach, New York.
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`2.
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`Defendant Verizon Media, Inc. (“Verizon Media”) is a Delaware corporation,
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`with principal place of business located in New York, New York.
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`3.
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`Defendant Oath Inc. (“Oath”) is a Delaware corporation, with principal place of
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`business located in New York, New York.
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`4.
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`Defendant Verizon Communications Inc. is a Delaware corporation, with
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`principal place of business located in New York, New York.
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`5.
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`Oath Inc. and Verizon Media, Inc. are subsidiaries of Verizon Communications
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`Inc. Together, all three of those entities offer the services of the web service known as “Yahoo!”
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`throughout the world under the collective name “Verizon Media Group”.
`
`10698
`
`
`
`UNITED STATES DISTRICT COURT
`SOUTHERN DISTRICT OF NEW YORK
`-------------------------------------------------------------x
`INVESTMENT SCIENCE LLC,
`
`Plaintiff,
`
`-against-
`
`VERIZON MEDIA, INC., OATH INC., and
`VERIZON COMMUNICATIONS INC.,
`
`1:20-cv-8159 ( )
`
`COMPLAINT
`
`JURY TRIAL
`DEMANDED
`
`Defendants.
`-------------------------------------------------------------x
`Plaintiff Investment Science LLC, by its attorneys Albert PLLC, for its complaint against
`
`the defendants Verizon Media, Inc., Oath Inc., and Verizon Communications Inc., alleges as
`
`follows:
`
`PARTIES
`
`1.
`
`Plaintiff Investment Science LLC (“Investment Science”) is a Delaware limited
`
`liability company, with principal place of business located in Long Beach, New York.
`
`2.
`
`Defendant Verizon Media, Inc. (“Verizon Media”) is a Delaware corporation,
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`with principal place of business located in New York, New York.
`
`3.
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`Defendant Oath Inc. (“Oath”) is a Delaware corporation, with principal place of
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`business located in New York, New York.
`
`4.
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`Defendant Verizon Communications Inc. is a Delaware corporation, with
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`principal place of business located in New York, New York.
`
`5.
`
`Oath Inc. and Verizon Media, Inc. are subsidiaries of Verizon Communications
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`Inc. Together, all three of those entities offer the services of the web service known as “Yahoo!”
`
`throughout the world under the collective name “Verizon Media Group”.
`
`10698
`
`
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`Case 1:20-cv-08159-GBD Document 1 Filed 10/01/20 Page 2 of 26
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`NATURE OF THE ACTION
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`6.
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`Yahoo Finance Premium is a web-based subscription service that provides
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`Verizon Media Group’s paying customers access to what it describes as “actionable data and
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`advanced tools for investors to trade with confidence.” Verizon Media Group describes Yahoo
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`Finance Premium “as a one-stop destination for subscribers, providing all of the tools and
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`information needed to make informed investment decisions and act upon them.” Verizon Media
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`Group introduced Yahoo Finance Premium to the public in June 2019 as a for-pay upgrade from
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`its free website at http://finance.yahoo.com.
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`7.
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`Yahoo Finance Premium is not the exclusive product of Verizon Media Group’s
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`own honest research and development efforts. Instead, Verizon Media Group stole substantial
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`and valuable elements of Yahoo Finance Premium from Investment Science in December 2017.
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`The extent of the theft was revealed in June 2019, when Verizon Media Group launched the
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`product on a subscription model regularly priced at $49.99 per month, and with an introductory
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`price of $34.99 per month.
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`8.
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`The theft of Investment Science’s property allowed Verizon Media Group to
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`redirect its own fruitless efforts to develop a premium product, and instead focus its development
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`efforts on the Investment Science product. This action seeks damages for that theft and an
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`injunction preventing Defendants from continuing their wrongdoing.
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`JURISDICTION AND VENUE
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`9.
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`This action arises under the laws of the United States, and the court therefore has
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`jurisdiction over the subject matter pursuant to 28 U.S.C. § 1331 and 18 U.S.C. § 1836.
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`10.
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`This court has supplemental jurisdiction over the subject matter pursuant to 28
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`U.S.C. § 1367 because the claims based on state law are so related to claims within the court’s
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`2
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`Case 1:20-cv-08159-GBD Document 1 Filed 10/01/20 Page 3 of 26
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`original jurisdiction that they form part of the same case or controversy under Article III of the
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`United States Constitution.
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`11.
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`This court has personal jurisdiction over defendant Verizon Media, Inc. because
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`Verizon Media, Inc. resides in the State of New York, because substantial portions of the
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`transactions at issue occurred within, and were directed to, the State of New York, and because
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`the tortious acts committed by the defendant were intended to cause and did in fact cause harm in
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`the State of New York.
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`12.
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`This court has personal jurisdiction over defendant Oath Inc. because Oath Inc.
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`resides in the State of New York, because substantial portions of the transactions at issue
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`occurred within, and were directed to, the State of New York, and because the tortious acts
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`committed by the defendant were intended to cause and did in fact cause harm in the State of
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`New York.
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`13.
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`This court has personal jurisdiction over defendant Verizon Communications Inc.
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`because Verizon Communications Inc. resides in the State of New York, because substantial
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`portions of the transactions at issue occurred within, and were directed to, the State of New
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`York, and because the tortious acts committed by the defendant were intended to cause and did
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`in fact cause harm in the State of New York.
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`14.
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`Venue is proper in this district pursuant to 28 U.S.C. § 1391(b)(1) because all of
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`the defendants reside in this district.
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`15.
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`Venue is also proper in this district pursuant to 28 U.S.C. § 1391(b)(2), because a
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`substantial part of the events or omissions giving rise to the claim occurred in this district.
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`3
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`Case 1:20-cv-08159-GBD Document 1 Filed 10/01/20 Page 4 of 26
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`FACTS COMMON TO ALL CLAIMS
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`Identification of the Defendants
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`16.
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`Verizon Communications Inc. is a publicly-traded company. In the nearly three
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`years since that company acquired the principal operating assets and liabilities of Yahoo! Inc.,
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`Verizon Communications Inc. has reported to the United States Securities and Exchange
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`Commission the status of its Yahoo operations both as being the operations of incorporated
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`subsidiaries (Oath Inc. and Verizon Media, Inc.), and as unincorporated divisions (“Verizon
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`Media”, “Oath”, and “Verizon Media Group”).
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`17.
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`Verizon Communications Inc. announced in December 2018 that “Oath” was to
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`be rebranded as “Verizon Media”. Despite this outward appearance, Oath Inc. and Verizon
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`Media, Inc. continue to exist as active legal entities in Delaware. For example, certain “AOL”
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`and “Yahoo”-derivative trademarks are owned by Oath Inc., while Verizon Media, Inc. owns a
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`separate portfolio of intellectual property. Since it is impossible, based upon the defendants’
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`own filings, to discern when Verizon Communications Inc. took particular actions regarding the
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`events at issue on its own through an unincorporated division or through a separate incorporated
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`entity, the three defendants are referred to collectively as “Verizon Media Group”, which is the
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`designator that Verizon Communications Inc. uses in its report on Form 10-K for the fiscal year
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`ending December 31, 2019.
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`Verizon Media Group’s Web Portal Business
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`18.
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`Yahoo! Inc. (originally named Yahoo Corporation) was formed in 1995; it was a
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`pioneer in the field of internet search engines and web portals. Despite its initial success, Yahoo!
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`Inc. ultimately lagged as it was eclipsed by more nimble and more innovative competitors.
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`19.
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`Verizon Communications Inc. had, by 2015, already embarked upon a strategy of
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`acquiring established web portals to establish its own footprint in Yahoo! Inc.’s industry. Its first
`4
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`Case 1:20-cv-08159-GBD Document 1 Filed 10/01/20 Page 5 of 26
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`major acquisition was AOL, which itself had been a past industry leader. At AOL’s peak, it
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`acquired Time Warner Inc. in January 2001 for approximately $182 billion. In 2009, the merged
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`company spun off the core AOL business into a separate subsidiary, and Verizon
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`Communications Inc. acquired that subsidiary for $3.8 billion in June 2015.
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`20.
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`In 2016, Verizon Communications Inc. agreed to acquire the primary operating
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`assets and liabilities of Yahoo! Inc. for $4.83 billion in cash and cash equivalents. After
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`completing the acquisition in July 2017 at a renegotiated reduced price, it then proceeded to
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`combine the AOL business and the Yahoo business under the “Oath” banner within the Oath Inc.
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`subsidiary.
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`21. With the acquisition of AOL and Yahoo, Verizon Media Group has become one
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`of the United States’ leading providers of search, communications, digital content and
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`advertising to consumers and businesses. It continues to provide those products and services
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`under many different brands, one of which is Yahoo.
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`22.
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`Among Verizon Media Group’s Yahoo-branded products and services is Yahoo
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`Finance (http://finance.yahoo.com). Yahoo Finance is a web portal that provides news, financial
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`data, and tools with which users can screen investment opportunities; its revenue is derived
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`primarily from advertising. Beginning in June 2019, the Yahoo Finance product offerings
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`expanded to include an optional, subscription-based product called Yahoo Finance Premium.
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`Investment Science’s Pitch to Verizon Media Group
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`23.
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`Investment Science is in the business of developing a product that provides
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`scoring metrics to facilitate rapid analysis of financial instruments. Once the product is fully
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`developed, Investment Science intends to use it to help manage internal investment funds of its
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`own and its affiliates, and to provide wealth management and financial services to others.
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`5
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`Case 1:20-cv-08159-GBD Document 1 Filed 10/01/20 Page 6 of 26
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`24.
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`In November 2017, one of Investment Science’s principals – Michael T. Kelly
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`(“Kelly”) – was coming to the end of a consulting engagement and sensed an opportunity for
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`more work through Verizon Media Group. On November 27, 2017, Kelly reached out to
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`Guillaume Goussault (“Goussault”), a high-level Verizon Media Group employee with whom
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`Kelly had worked at a company called Liquidnet.
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`25.
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`Kelly’s purpose in reaching out to Goussault was to develop business for
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`Investment Science, either in the form of a consulting arrangement to develop new products and
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`services to be sold under the Yahoo Finance brand or to further exploit (under the Yahoo Finance
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`brand) existing products that Investment Science had already developed.
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`26.
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`Kelly told Goussault that he was nearing the end of a current consulting
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`engagement and would soon be looking for new work. A few days later, on December 1,
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`Goussault invited Kelly to a December 6 meeting at Verizon Media Group’s offices.
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`27.
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`Goussault and Kelly met on December 6, 2017. Both participants understood that
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`the information exchanged during that meeting was confidential and proprietary to the respective
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`parties, and was to be used only for the purpose of evaluating a possible transaction between
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`Investment Science and Verizon Media Group.
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`28. With that understanding of confidentiality and restricted use, Goussault confirmed
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`to Kelly that Verizon Media Group was indeed seeking to develop new Yahoo Finance products,
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`and he proceeded to describe Verizon Media Group’s confidential concept for a product based
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`upon a proprietary data set. The participants discussed and evaluated the Verizon Media Group
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`6
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`Case 1:20-cv-08159-GBD Document 1 Filed 10/01/20 Page 7 of 26
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`confidential concept that Goussault disclosed. Kelly in turn explained to Goussault the recent
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`projects that Kelly had been working on.1
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`29.
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`Goussault told Kelly that he found Investment Science’s concepts very interesting
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`and told him that Kelly needed to meet with the head of Yahoo Finance product development,
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`Charles Hartel (“Hartel”), who was Goussault’s boss.
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`30.
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`Kelly contacted Hartel through LinkedIn on the same day. Hartel responded to
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`Kelly in less than a half-hour, and invited Kelly to a meeting at the offices of Verizon Media
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`Group.
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`31.
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`Kelly, Hartel, and Goussault met at the Verizon Media Group’s 770 Broadway
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`office in Manhattan on December 12, 2017.
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`32.
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`All participants understood that the information exchanged during that meeting
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`was confidential and proprietary to the respective parties, and was to be used only for the
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`purpose of evaluating a possible transaction between Investment Science and Verizon Media
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`Group. With that understanding of confidentiality and restricted use, the parties conducted their
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`meeting.
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`33.
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`Hartel told Kelly that Verizon Media Group was trying to create a premium
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`Yahoo Finance subscription-based product that would incorporate and analyze more and
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`different data than was available to the general public on the regular Yahoo Finance website.
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`Hartel told Kelly that Verizon Media Group had come up with only one idea: the confidential
`
`
`1 Since the detailed information exchanged at the meeting constituted trade secrets of both
`Verizon Media Group and Investment Science, the trade secrets themselves are not described in
`detail in this pleading, pursuant to the provisions of 18 U.S.C. § 1835. Once the Court enters
`such orders as are necessary and appropriate to preserve the confidentiality of the trade secrets at
`issue in this case, the details may of course be exchanged between the parties during the course
`of discovery.
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`7
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`Case 1:20-cv-08159-GBD Document 1 Filed 10/01/20 Page 8 of 26
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`and proprietary product that Goussault had described to Kelly on December 6. Beyond that idea,
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`Hartel admitted that Verizon Media Group had no model, no mechanism, and no proof of
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`concept for a premium Yahoo Finance product.
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`34.
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`In exchange, Kelly then disclosed Investment Science’s confidential and
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`proprietary information. Kelly told Hartel and Goussault that Investment Science already had
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`already developed – over the previous 16 years – a product that did what Verizon Media Group
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`wanted for Yahoo Finance, and more. Hartel asked Kelly to present the Investment Science
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`product and to explain its operation, which Kelly did. He presented the confidential and
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`proprietary details of the Investment Science product; the presentation included descriptions of
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`data sources and methods, algorithms, and analytical concepts. As proof of concept, he
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`presented a trading plan that he had already used for actual trading using the Investment Science
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`product entitled “River Heights Capital Management, LLC – Trading Plan” (the “Trading Plan”)
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`and results of the Trading Plan, including chart patterns, raw financial statements, technical
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`reports, and daily financial reports. He handed Hartel a physical copy of the six-page
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`copyrighted, confidential Trading Plan and showed Hartel and Goussault examples of the daily
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`report, accounting data, technicals report, chart patterns report, full candlesticks report,
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`algorithms, data sources, and plans for future product development.
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`35.
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`At Hartel’s request, Kelly conducted a whiteboard session in which he explained
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`the operation of the Investment Science product, explained how to conduct the scoring of the
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`investments, and provided a preview of additional features that Investment Science was already
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`working on and features that were in the testing phase.
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`36.
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`Hartel asked detailed questions about the Investment Science product and took
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`copious notes of the meeting.
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`8
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`Case 1:20-cv-08159-GBD Document 1 Filed 10/01/20 Page 9 of 26
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`37.
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`The meeting concluded on a positive note. Hartel told Kelly that he was
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`interested in the Investment Science product but needed to get funding for it and that he would
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`contact Kelly if he could obtain funding for development of the product. Kelly never heard from
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`Hartel again.
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`Investment Science’s Trade Secrets
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`38.
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`The Investment Science product incorporates over a dozen different data elements
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`that are not present in algorithms that had been created previously, assigns scores to those data
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`elements, and then uses those scores to rank and evaluate publicly-traded stocks. There was
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`nothing of the kind in the portfolio of Yahoo Finance products and services before Verizon
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`Media Group’s representatives met with Kelly; nobody outside of Investment Science had it.
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`Collectively, the information disclosed to Goussault of December 6, 2017, and the information
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`disclosed to Hartel and Goussault on December 12, 2017 constitute the “Investment Science
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`Confidential and Proprietary Information” that are at issue in this action.
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`39.
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`The Investment Science Confidential and Proprietary Information is the property
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`of Investment Science.
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`Verizon Media Group Steals Investment Science’s Product
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`40. While Investment Science never heard from Verizon Media Group again, it
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`became clear on June 13, 2019 that Verizon Media Group had Investment Science in the
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`forefront of its corporate mind. That was the date on which Verizon Media Group launched
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`Yahoo Finance Premium.
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`41.
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`In introducing Yahoo Finance Premium, the defendants described the product’s
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`key features as follows:
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`9
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`Case 1:20-cv-08159-GBD Document 1 Filed 10/01/20 Page 10 of 26
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`Premium Data and Charting: Identify new opportunities through short and long
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`term valuation metrics and automated pattern recognition for technical analysis.
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`Plot technical and corporate events on charts with the click of a button.
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`Advanced Portfolio Analytics: Get tools to measure portfolio performance and
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`allocation, manage risk and volatility, and increase returns across multiple linked
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`brokerages.
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`Research Reports and Investment Ideas: Browse, search, and filter through a
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`rich library of research reports, drafted by third-party analysts or identified
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`through algorithms. Discover actionable investment ideas on stocks that are
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`trending or relevant to the companies you follow, updated daily.
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`Company Profiles: Go beyond fundamentals by evaluating key alternative data
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`metrics against sector averages. Users can gain better insight into hiring,
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`innovation and supply chain dependencies, from operational KPIs (sector-specific
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`metrics) to an innovation index (patents, trademarks, FDA).
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`42.
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`Yahoo Finance Premium incorporates substantial unique and proprietary elements
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`of the Investment Science Confidential and Proprietary Information that were disclosed in
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`confidence to Hartel in December 2017, including specific metrics, functionality, scoring
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`methodology, and product vision. Yahoo Finance Premium does not include the troubled
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`confidential concept belonging to Verizon Media Group that the parties discussed on
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`December 6, 2017 and December 12, 2017.
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`43.
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`Yahoo Finance Premium is important to the defendants’ business strategy not
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`simply because of the revenue it generates for the subscription model. It is designed to pave the
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`way for the defendants to reduce dependence on an advertising-based business and increase
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`Case 1:20-cv-08159-GBD Document 1 Filed 10/01/20 Page 11 of 26
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`subscription-based business throughout its catalog of properties. Verizon Media’s CEO K. Guru
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`Gowrappan described the strategy as follows: “The launch of Yahoo Finance Premium is one
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`example of the membership opportunities ahead for us as we focus on creating services that
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`provide value to our consumers and advertisers, including subscription, transactions and
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`commerce that are uniquely authentic to each brand.”
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`44.
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`Those elements were not free for the defendants to take for their own without
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`compensation, either to incorporate directly or to use as a basis for speeding up their own process
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`of developing Yahoo Finance Premium. The defendants were not authorized to exploit any of
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`Investment Science’s rights in the Investment Science Confidential and Proprietary Information.
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`But they did, and this action has been brought to redress that wrong.
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`FIRST CLAIM
`(Acquisition of Trade Secrets by Improper Means Under
`Defend Trade Secrets Act, 18 U.S.C. §§ 1836 et seq.)
`
`45.
`
`46.
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`Plaintiff repeats and re-alleges paragraphs 1 to 44 as if set forth fully herein.
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`Investment Science operates its business in interstate commerce across the United
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`States. The trade secrets misappropriated by Verizon Media Group are related to, and intended
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`for use in, interstate commerce.
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`47.
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`Verizon Media Group improperly acquired the Investment Science Confidential
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`and Proprietary Information, thereby misappropriating Investment Science’s trade secrets
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`pursuant to 18 U.S.C. § 1839(5)(A).
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`48.
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`Verizon Media Group acquired Investment Science Confidential and Proprietary
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`Information while knowing or having reason to know that the Investment Science Confidential
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`and Proprietary Information were acquired by improper means, namely, through
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`misrepresentation and/or breach of duty to maintain secrecy, by Goussault and/or Hartel.
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`11
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`Case 1:20-cv-08159-GBD Document 1 Filed 10/01/20 Page 12 of 26
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`49.
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`Verizon Media Group improperly acquired the Investment Science Confidential
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`and Proprietary Information to compete with Investment Science and is in fact doing so utilizing
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`that very same information.
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`50.
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`The aforementioned information constitutes “trade secrets” under the Defend
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`Trade Secrets Act, as defined in 18 U.S.C. § 1839(3). The misappropriated information
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`concerned Investment Science’s financial, business, scientific, technical, and economic
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`information that includes plans, compilations, formulas, designs, prototypes, methods,
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`techniques, processes, procedures, and programs.
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`51.
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`Investment Science has taken reasonable measures to keep such information
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`secret by, among other things, using the information solely internally to Investment Science,
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`performing development activities primarily through the services of principals of Investment
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`Science, requiring persons with access to confidential information to sign appropriate
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`confidentiality agreements, never permitting development contractors to access the entire system,
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`and providing contractors access to only one component of the product at a time, and only to
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`such information as is necessary for the contracted task. Investment Science’s full business plan,
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`list of data sources, full list of product features, and full description of product functionality has
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`never been disclosed outside of Investment Science.
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`52.
`
`The Investment Science Confidential and Proprietary Information
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`misappropriated by Verizon Media Group includes highly confidential and proprietary
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`information which required substantial resources, time and investment by Investment Science to
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`create and/or develop, and derives independent economic value from not being generally known
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`to, or readily ascertainably by, those who can obtain economic value from use of this
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`information, such as Investment Science’s competitors.
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`12
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`Case 1:20-cv-08159-GBD Document 1 Filed 10/01/20 Page 13 of 26
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`53.
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`Verizon Media Group’s misappropriation of Investment Science Confidential and
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`Proprietary Information has caused Investment Science to suffer harm, including but not limited
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`to loss of confidentiality of concept, loss of first-mover advantage, loss of exclusivity, loss of
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`investment, loss of expenses of research and development, loss of licensing revenue, loss of sales
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`revenue, loss of investors, and loss of reputation. Furthermore, Defendants have altered their
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`business strategies based on the misappropriated trade secrets, thereby gaining new subscribers
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`and increased market share in profitable industries, among other advantages, to the detriment of
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`Investment Science.
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`54.
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`Verizon Media Group’s actions constitute willful and malicious misappropriation
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`of the Investment Science’s trade secrets pursuant to the Defend Trade Secrets Act. Therefore,
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`Investment Science is entitled to exemplary damages under 18 U.S.C. §1836(b)(3)(D) in an
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`amount up to two times the damages awarded under 18 U.S.C. §1836(b)(3)(B).
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`55.
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`Investment Science is entitled to full compensatory and consequential damages,
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`including damages pursuant to 18 U.S.C. §1836(b)(3)(B) for actual loss and any unjust
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`enrichment caused by the misappropriation, as well as attorneys’ fees, costs, and expenses, and
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`such other relief as the Court deems just and proper.
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`56.
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`Accordingly, Investment Science demands judgment against Defendants for
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`compensatory and exemplary damages, prejudgment interest, damages for unjust enrichment, an
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`award of Plaintiff’s reasonable attorneys’ fees and costs pursuant to 18 U.S.C. § 1836(b)(3), and
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`such other relief as the Court deems just and proper.
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`SECOND CLAIM
`(Unauthorized Disclosure or Use of Trade Secrets Under
`Defend Trade Secrets Act, 18 U.S.C. §§ 1836 et seq.)
`
`57.
`
`Plaintiff repeats and re-alleges paragraphs 1 to 44 as if set forth fully herein.
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`Case 1:20-cv-08159-GBD Document 1 Filed 10/01/20 Page 14 of 26
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`58.
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`Investment Science operates its business in interstate commerce across the United
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`States. The trade secrets misappropriated by Verizon Media Group are related to, and intended
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`for use in, interstate commerce.
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`59.
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`Verizon Media Group improperly disclosed and/or used Investment Science
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`Confidential and Proprietary Information, thereby misappropriating Investment Science’s trade
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`secrets pursuant to 18 U.S.C. § 1839(5)(B).
`
`60.
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`Verizon Media Group disclosed the Investment Science Confidential and
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`Proprietary Information by communicating them among the employees of each of the defendant
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`corporate entities and by communicating them between the separate corporate entities through
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`the mechanism of their employees.
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`61.
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`Verizon Media Group used the Investment Science Confidential and Proprietary
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`Information without Investment Science’s consent by relying upon the Investment Science
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`Confidential and Proprietary Information in developing the Yahoo Finance Premium product and
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`incorporating the Investment Science Confidential and Proprietary Information into the Yahoo
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`Finance Premium product.
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`62.
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`Verizon Media Group knew or had reason to know that the information was
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`derived from or through a person who had used improper means to acquire the Investment
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`Science Confidential and Proprietary Information– through misrepresentation and/or breach of
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`duty to maintain secrecy – and/or under circumstances giving rise to a duty to maintain the
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`secrecy of the Investment Science Confidential and Proprietary Information (i.e., having
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`exchanged the information in a confidential meeting wherein all parties were bound to keep the
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`information exchanged secret).
`
`14
`
`
`
`Case 1:20-cv-08159-GBD Document 1 Filed 10/01/20 Page 15 of 26
`
`63.
`
`The aforementioned information constitutes “trade secrets” under the Defend
`
`Trade Secrets Act, as defined in 18 U.S.C. § 1839(3). The misappropriated information
`
`concerned Investment Science’s financial, business, scientific, technical, and economic
`
`information that includes plans, compilations, formulas, designs, prototypes, methods,
`
`techniques, processes, procedures, and programs.
`
`64.
`
`Investment Science has taken reasonable measures to keep such information
`
`secret by, among other things, using the information solely internally to Investment Science,
`
`performing development activities primarily through the services of principals of Investment
`
`Science, requiring persons with access to confidential information to sign appropriate
`
`confidentiality agreements, never permitting development contractors to access the entire system,
`
`and providing contractors access to only one component of the product at a time, and only to
`
`such information as is necessary for the contracted task. Investment Science’s full business plan,
`
`list of data sources, full list of product features, and full description of product functionality has
`
`never been disclosed outside of Investment Science.
`
`65.
`
`The Investment Science Confidential and Proprietary Information
`
`misappropriated by Verizon Media Group includes highly confidential and proprietary
`
`information which required substantial resources, time and investment by Investment Science to
`
`create and/or develop, and derives independent economic value from not being generally known
`
`to, or readily ascertainably by, those who can obtain economic value from use of this
`
`information, such as Investment Science’s competitors.
`
`66.
`
`Verizon Media Group’s misappropriation of the Investment Science Confidential
`
`and Proprietary Information has caused Investment Science to suffer harm, including but not
`
`limited to loss of confidentiality of concept, loss of first-mover advantage, loss of exclusivity,
`
`15
`
`
`
`Case 1:20-cv-08159-GBD Document 1 Filed 10/01/20 Page 16 of 26
`
`loss of investment, loss of expenses of research and development, loss of licensing revenue, loss
`
`of sales revenue, loss of investors, and loss of reputation. Furthermore, Defendants have altered
`
`their business strategies based on the misappropriated trade secrets, thereby gaining new
`
`subscribers and increased market share in profitable industries, among other advantages, to the
`
`detriment of Investment Science.
`
`67.
`
`Verizon Media Group’s actions constitute willful and malicious misappropriation
`
`of Investment Science’s trade secrets pursuant to the Defend Trade Secrets Act. Investment
`
`Science therefore is entitled to exemplary damages under 18 U.S.C. §1836(b)(3)(D) in an
`
`amount up to two times the damages awarded under 18 U.S.C. §1836(b)(3)(B).
`
`68.
`
`Investment Science is entitled to full compensatory and consequential damages,
`
`including damages pursuant to 18 U.S.C. §1836(b)(3)(B) for actual loss and any unjust
`
`enrichment caused by the misappropriation, as well as attorneys’ fees, costs, and expenses, and
`
`such other relief as the Court deems just and proper.
`
`69.
`
`Accordingly, Investment Science demands judgment against Defendants for
`
`compensatory and exemplary damages, damages for unjust enrichment, prejudgment interest, an
`
`award of Plaintiff’s reasonable attorneys’ fees and costs pursuant to 18 U.S.C. § 1836(b)(3), and
`
`such other relief as the Court deems just and proper.
`
`THIRD CLAIM
`(Injunctive Relief Under The Defend Trade Secrets Act, 18 U.S.C. §§ 1836 et seq.)
`
`70.
`
`71.
`
`Plaintiff repeats and re-alleges paragraphs 1 to 44 as if set forth fully herein.
`
`Investment Science operates its business in interstate commerce across the United
`
`States. The trade secrets misappropriated by Verizon Media Group are related to, and intended
`
`for use in, interstate commerce.
`
`16
`
`
`
`Case 1:20-cv-08159-GBD Document 1 Filed 10/01/20 Page 17 of 26
`
`72.
`
`Verizon Media Group improperly acquired, disclosed, and/or used Investment
`
`Science Confidential and Proprietary Information, thereby misappropriating Investment
`
`Science’s trade secrets pursuant to 18 U.S.C. § 1839(5).
`
`73.
`
`The aforementioned information constitutes “trade secrets” under the Defend
`
`Trade Secrets Act, as defined in 18 U.S.C. § 1839(3). The misappropriated information
`
`concerned Investment Science’s financial, business, scientific, technical, and economic
`
`information that includes plans, compilations, formulas, designs, prototypes, methods,
`
`techniques, processes, procedures, and programs.
`
`74.
`
`Investment Science has taken reasonable measures to keep such information
`
`secret by, among other things, using the information solely internally to Investment Science,
`
`performing development activities primarily through the services of principals of Investment
`
`Science, requiring persons with access to confidential information to sign appropriate
`
`confidentiality agreements, never permitting development contractors to access the entire system,
`
`and providing contractors access to only one component of the product at a time, and only to
`
`such information as is necessary for the contracted task. Investment Science’s full business plan,
`
`list of data sources, full list of product features, and full description of product functionality has
`
`never been disclosed outside of Investment Science.
`
`75.
`
`The Investment Science Confidential and Proprietary Information
`
`misappropriated by Verizon Media Group includes highly confidential and proprietary
`
`information which required substantial resources, time and investment by Investment Science to
`
`create and/or develop, and derives independent economic value from not being generally known
`
`to, or readily ascertainably by, those who can obtain economic value from use of this
`
`information, such as Investment Science’s competitors.
`
`17
`
`
`
`Case 1:20-cv-08159-GBD Document 1 Filed 10/01/20 Page 18 of 26
`
`76.
`
`Verizon Media Group’s misappropriation of Investment Science Confidential and
`
`Proprietary Information has caused Investment Science to suffer harm, including but not limited
`
`to
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