Late last month, the California Court of Appeal upheld a $180,000 award of sanctions against an employer for bringing a baseless trade secret misappropriation suit. While this case arose in California and involved California law, it involves concepts that have been recognized by Massachusetts judges and shows the possible consequences of the common impulse to file a lawsuit quickly and ask questions later.
In the California case, Cypress Semiconductor Corp. v. Maxim Integrated Products, Inc., Cypress sued its competitor, Maxim, for hiring two of its former employees. Cypress argued that this hiring constituted trade secret misappropriation, for two reasons. First,… More