MSC Corp sues Altair for theft of trade secrets
California-based MSC Software Corporation has sued Michigan-based Altair Engineering Inc. and seven former MSC employees in a U.S. District Court in Detroit over allegations that the seven employees (who were part of the Adams division of MSC and developed the Adams/Car software product) took trade secret information with them and used the information in the development of two software products launched by Altair this year, including Altair MotionView.
According to the article: “The suit alleges that Altair hired more than “20 percent of the MSC Software Adams Group,” developed a product using trade secrets and “undertook an aggressive program to induce Adams/Car customers to abandon Adams/Car and adopt Altair MotionView.”
C. Thomas Ludden, the attorney for the employees countered that it was all a coincidence and that the former MSC employees left MSC at varying times for varying reasons. “Our position is — and we’ve stated as much in the pleadings — that we deny any theft of trade secrets,” Ludden said. “We deny that we’ve done anything to break any laws or even violate a noncompete or confidentiality agreement. The clients moved for all the usual reasons you might change employers.”
This is an increasingly common trade secrets case where employees leave their employer and go to a competitor. The former employer then sues competitor alleging the misappropriation of trade secrets.
We’ll follow this closely as it develops…
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