Seyfarth Shaw

Firm overview:

Seyfarth's Trade Secrets practice handles highly publicised trial and appellate matters, including cases reaching the highest courts in the US and abroad.

The firm is known particularly for its employment-related advice and, notably, achieved a successful result for a client in one of the largest trade secrets cases in the US, involving billions of dollars in electric vehicle technology.

Seyfarth has secured multimillion-dollar settlements and permanent injunctions in "bet the company" litigation. The firm recently obtained a significant settlement and permanent injunction for a national logistics client, safeguarding their most valuable customers from unlawful poaching by former executives and a competitor.

The trade secrets group collaborates across disciplines with Seyfarth's eDiscovery lawyers, who are forensically trained to address data security breaches. This collaboration assists with the firm’s advice on cybersecurity and ransom attacks.

In recent years, the trade secrets team has expanded its international reach, representing clients in complex cases worldwide. The firm’s experience spans industries, including pharmaceuticals, medical devices and healthcare. The team has also been trusted with international trade secrets issues in mergers and acquisitions, sensitive hires, and business deals.

Seyfarth's attorneys are active in global thought leadership, holding leadership positions in trade secrets-related organisations such as the American Intellectual Property Law Association (AIPLA), US Intellectual Property Office (USIPO) and the Sedona Conference.

The firm’s “50-State Non-Compete Desktop Reference” is an asset for professionals dealing with non-compete and trade secrets laws in the US. The firm has been a voice in the US Federal Trade Commission’s (FTC’s) controversial move to “limit non-compete agreements having a profound effect on trade secrets protection”. Non-compete agreements, once straightforward, now demand the firm’s meticulous scrutiny in light of rapidly evolving work structures.

Seyfarth’s trade secrets blog receives thousands of monthly visits, attesting to its industry-wide recognition. The firm also provides education on trade secrets via complimentary webinars and other resources.

Team overview:

Seyfarth’s Trade Secrets Group operates as a separate, national, and international entity in the firm. The team helps clients prevent trade secret theft, non-compete violations, and computer fraud. They routinely draft employment agreements, trade secret protection, and non-competition agreements in varying business transactions.

The team counsels clients on business purchases, recruiting, onboarding, and termination. Additionally, the group conducts trade secrets audits and provides robust litigation support when needed.

The team is led by Michael Wexler in Chicago, Robert Milligan in Los Angeles and Katherine Perrelli in Boston. Some 41 partners and 18 other lawyers spend at least 50% of their time on trade secrets matters.

Michael Wexler is a seasoned trial attorney with extensive and successful jury and bench trials throughout the US for clients of all sizes, including some of the largest companies in the world. He focuses on trial work and counselling in trade secrets and restrictive covenants, corporate espionage, complex commercial disputes and white collar criminal defence.

Robert Milligan’s practice encompasses a wide variety of commercial litigation and employment matters, including general business and contract disputes, unfair competition, trade secret misappropriation, and other intellectual property theft. Peers say: “Robert Milligan at Seyfarth Shaw is one of the big names in the trade secrets arena and has a deserved reputation”.

Katherine Perrelli is recognised by peers for being an “extremely experienced and strategic trade secrets/employee mobility litigator”. Perrelli counsels clients in trade secrets and unfair competition law, restrictive covenant litigation, complex commercial disputes, wrongful termination, and internal workplace misconduct and compliance complaints.

Key matters:

• Karma Automotive v de Vries et al, US District Court for the Southern District of Texas

Seyfarth Shaw partners Michael Wexler, and Jesse Colman (Houston) led a 10-strong team including Robert Milligan (Los Angeles), representing electric vehicles specialist, Karma Automotive, against several former Karma employees; DeLorean Motors Reimagined; and Reimagined Automotive.

• Karma Automotive v Lordstown Motors

Seyfarth client Karma Automotive alleged that Ohio corporation Lordstown Motor Company (LMC) had misappropriated its trade secrets to circumvent its failure to produce a functional electrical vehicle for retail sale.

LMC faced US Securities and Exchange Commission (SEC) enquiries over alleged misrepresentations on product pre-orders, and pressure from investors and the public due to substantial development and production delays. The lawsuit alleged LMC aimed to avoid millions of dollars in costs and years of development time.

Karma claimed that LMC induced multiple Karma employees to accept job offers and work for the company while still employed by Karma. Discovery revealed that the defendants stole sensitive information covering nearly every aspect of Karma's vehicles, including source code and power mode specifications. In addition, allegations of evidence destruction by LMC employees emerged.

The value of the information was estimated in the hundreds, if not billions, of dollars. Seyfarth’s team of Michael Wexler, Kevin Mahoney and Jesse Coleman filed a 28-count complaint against LMC, its executives, and former Karma employees. The allegations included trade secrets misappropriation, tortious interference, and breaches of contract and fiduciary duties.

LMC went into bankruptcy and reportedly reached a $40 million settlement with Karma Automotive, including $5 million due as a royalty for the use of Karma's intellectual property. Baker Hostetler represented LMC.

• Seyfarth is legal counsel to the Panda Restaurant Group (PRG), the largest family-owned Chinese restaurant in the US with 2,200 global stores, 30,000 associates, and $3 billion in sales. Seyfarth advises PRG on intellectual property enforcement, counselling, and trade secrets/non-compete transactions and litigation. Seyfarth has also advised on the development of an innovative non-disclosure document automated system to facilitate seamless deal flow.
• Seyfarth advised PRG brand, Panda Express, on intellectual property and restrictive covenant/exclusivity aspects. Over the past two years, Seyfarth has represented the company in a contentious breach of contract dispute with a vendor seeking more than $100 million, and has evolved to include allegations of trade secrets misappropriation in arbitration proceedings.

Clients:

Stryker Corporation, Karma Automotive, Capstone Logistics, SeneGence International, Whittier Trust Company, Panda Restaurant Group, JWE, LG, Lonza Houston, Baker Hughes Oilfield Operations, US Foods, Korn Ferry (new client), OnPrem Solutions.