Case: Individual Employment Rights/Contracts (C.D. Cal.)

A California federal district court has denied motions to dismiss in a legal battle involving Glaukos Corporation and its former senior director of clinical research. The court case centers on allegations that the former executive downloaded more than 11,000 confidential files before transitioning to a position at competitor SpyGlass.

Glaukos Corporation brought the lawsuit asserting claims of breach of contract, fraud, and breach of duty of loyalty. The company also alleged violations of the Computer Fraud and Abuse Act. The court determined that Glaukos sufficiently supported its claims that the former employee misused proprietary information and solicited staff members for the direct benefit of his new employer.

Both SpyGlass and the former executive requested that the court dismiss the lawsuit entirely. By denying these motions, the judge allows the case to proceed into the discovery and trial phases. This decision highlights the legal risks companies face when employees move between direct competitors while retaining sensitive corporate data.

The litigation remains a significant watch item for firms concerned with the protection of trade secrets and the enforceability of employment agreements. As the case moves forward, it will likely provide further clarity on the standards required to prove duty of loyalty breaches in California courts.