Hedgeye Wins Injunction Against Its Former Managing Director, Darius Dale
STAMFORD, Conn., Aug. 25, 2021 /PRNewswire/ -- Federal Judge Andrew L. Carter Jr. recently found that Hedgeye "has established a likelihood of success on the merits" regarding its claims against its former Managing Director, Darius Dale, for misappropriating Hedgeye's trade secrets. Judge Carter granted Hedgeye's motion for a preliminary injunction, enjoining Mr. Dale from further accessing and using Hedgeye trade secrets and other confidential information, including source models and customer lists.
Hedgeye, an independent investment research and online financial media company, originally filed suit in federal court in Manhattan on April 26, 2021. The company brought suit against Mr. Dale to preserve the value of the services for which its subscribers pay, protect subscriber privacy, and safeguard the livelihood of its 70+ employees.
"Our client has expressed concern that Mr. Dale and others have advanced incorrect statements about the purpose and preliminary results of this lawsuit," said Tom Wallerstein, a partner at Venable LLP and counsel for Hedgeye in the case. "These are legal matters which belong in a court of law, not on social media."
On July 28:
- Judge Carter held that Hedgeye "has established a likelihood of success on the merits" of its claims. He granted Hedgeye's motion for a preliminary injunction, enjoining Mr. Dale from further accessing and using Hedgeye trade secrets and other confidential information, including source models and customer lists.
- Judge Carter also found that "despite the Court's April 27th, 2021, order directing Mr. Dale to deliver to Hedgeye any other files . . . that contained Hedgeye's trade secrets and/or other confidential information," Mr. Dale failed to comply until at least July 23. Judge Carter therefore ordered Mr. Dale, through his counsel, to undertake extensive efforts to quarantine the Hedgeye confidential information and prevent Mr. Dale from having access to it.
- Judge Carter concluded that Hedgeye "established that Mr. Dale obtained Hedgeye's trade secrets upon his departure from the company by taking pictures of notebooks, copying several of Hedgeye's source files and transferring them to his personal computer."
In reaching his conclusion, Judge Carter considered Mr. Dale's admission that after he left Hedgeye, he built his own financial models with Hedgeye's proprietary models open literally side-by-side with his own, and looking at both of them "essentially at the same time."
As Judge Carter put it, "Mr. Dale's deposition testimony establishes that he retained Hedgeye's trade secrets and reviewed them with 'extreme care' while creating 42 Macro . . . ."
Judge Carter concluded that Hedgeye "has established irreparable harm" from Mr. Dale's misconduct, and this justified granting Hedgeye's request for an injunction.
"While Hedgeye considers Mr. Dale to have made meaningful contributions during his tenure at the company, that in no way gave him the right to take and use confidential and proprietary company information to run his competing business," added Mr. Wallerstein. "We look forward to a fast and fair resolution through the legal process."
Based on information Hedgeye learned after filing suit, the firm has added claims against Mr. Dale's business partner Steven Lamar, who created 42 Macro, LLC in order to collaborate and conspire with Mr. Dale in this unlawful conduct.
Venable LLP is representing Hedgeye in this legal action. The matter is Hedgeye Risk Management, LLC v. Darius Dale, Steven Lamar and 42 Macro, LLC. No. 1:21-cv-03687-ALC-RWL in the United States District Court for the Southern District of New York.
SOURCE Hedgeye Risk Management
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