caltradesecrets.com

Breaking News: Apple Sues Its Own Global Supply Manager for Misappropriation of Trade Secrets

In Breaking News, Criminal Theft of Trade Secrets, Fun with Trade Secrets, Trade Secrets News on August 16, 2010 at 8:45 pm
apple
Image by nebarnix via Flickr

Apple Inc. filed suit on Friday against one of its Global Supply Managers alleging that he had “abused his position, violated Apple policies, and broken the law by stealing Apple’s proprietary, trade secret and other confidential information and converting it to his own benefit.”   Complaint ¶ 1.  The case is Apple Inc. v. Devine, et al., CV10-03563 PVT (N.D. Cal. Aug. 13, 2010).  Defendants are Paul S. Devine and CPK Engineering, Inc.  Apple alleges that it paid Devine over $614,000 in salary and $51,076 in bonus compensation and issued him 4,500 Apple stock options and 900 shares of Apple restricted stock.

Shannon Henson at Law360 reports that Apple served Devine on the day he appeared in court on charges of wire fraud, conspiracy, money laundering and engaging in monetary transactions with criminally derived property.

Apple claims that it investigated Devine since April 2010, and during the course of that investigation, discovered an “Entourage database and cache of e-mail from Devine’s personal Hotmail and Gmail e-mail accounts stored on Devine’s Apple-supplied laptop hard drive.”  Id. ¶ 16.  “These e-mails also confirmed that Devine had demanded and received over a million dollars in illicit payments, kickbacks, bribes, and other things of value (which Devine sometimes refers to in e-mail correspondence as ‘samples’) from numerous suppliers, and had concealed his scheme from Apply over the course of several years.”

Apple alleges 12 separate causes of action (the complaint was carefully pled, but several of the causes of action are likely susceptible to dismissal on a 12(b)(6) motion).

UPDATE: Kaedar Electronics Acknowledges Paying Brokerage Commission

UPDATE: Kaedar Electronics Suspends Employee

Judge and Attorneys

The case has been assigned to Magistrate Judge Patricia V. Trumbull of the Northern District of California.

Attorneys for plaintiff Apple Inc. are George A. Riley, Sharon M. Bunzel, Aaron M. Rofkahr, and Jean B. Niehaus of O’Melveny & Myers in San Francisco.

The criminal case is U.S. v. Devine, case number 10-cr-00603, in the U.S. District Court for the Northern District of California.

The civil suit is Apple Inc. v. Devine et al., case number 10-cv-03563, in the same court.

By CHARLES H. JUNG

Enhanced by Zemanta
Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: