Cases from Supreme Court of New York

Appellate Division, First Department, Supreme Court of New York
NY Appellate Court Revives Claim Against Early Equity Investor in Pinterest

Plaintiff Theodore F. Schroeder alleged that defendants Brian S. Cohen, New York Angels, Inc. (“NY Angels”), and Pinterest Inc. (“Pinterest”) misappropriated Schroeder's confidential ideas, technology and business plans in developing the popular social network bulletin board, Pinterest.com. In 2005, Schroeder had initially invited Cohen to participate in planning meetings for another project and during these meetings, Schroeder had shared confidential information, which Schroeder alleges Cohen then provided to Pinterest.

On October 6, 2015, the NY appellate court revived the trade secret misappropriation claim, stating that the Complaint provides sufficient support for the trade secret misappropriation claim against Cohen and NY Angels. The court noted that Cohen had indeed been exposed to the confidential information and had provided the confidential information whilst knowing the information must remain confidential. Further, the opinion notes Schroeder’s efforts in trying to maintain secrecy over the technology he worked on for roughly four years. However, the court did not extend the misappropriation claim to Pinterest, as there were no facts in the pleadings demonstrating that there had ever been a confidential relationship established between Plaintiff and Pinterest, let alone any contact between them at all.

Click here to read the full opinion.

New York County, Supreme Court of New York
Chico’s reaches settlement with rival Caché following allegations that former Chico’s employees had misappropriated trade secrets regarding seasonal clothing lines

Florida-based apparel company Chico's (which acquired White House/Black Market stores in 2003) accused rival company Caché of hiring two former Chico’s employees and using their intimate knowledge of upcoming White House/Black Market lines to create similar seasonal lines for Caché. Caché and the two former employees, Rabia Farhang and Christine Board, were accused of breach of contract and misappropriation of trade secrets.

The case was remanded to state court on July 27, 2010. In September 2010, Chico's withdrew its motion for a preliminary injunction because it felt that the proceedings could not be completed in time to stop Caché from selling products that Chico's alleged were developed using stolen confidential documents. Chico's stated that it planned to continue with its lawsuit. Ultimately, the parties settled in April of 2011.