Backed by our experience in the Silicon Valley and knowledge of start-ups, LexAnalytica, PC successfully represents parties involved in founder disputes. In the excitement and fog of starting a business, parties often fail to memorialize their founding arrangements, sometimes resulting in disputes over the assignment of intellectual property or share ownership. We have helped our clients achieve outstanding results in these founder disputes.
In one California case, we successfully represented defendants in defeating all of the ownership claims made by their alleged business partner, a very successful entrepreneur in the Silicon Valley.
In a New York case, we prevailed for a defendant founder in a $10 million dollar claim by an alleged partner.
Whether they are customer lists, software algorithms, or hardware schematics, a business’ trade secrets can be the most valuable assets in its possession. To prove a trade secret, the claiming party need to show that they have taken adequate steps to protect the confidentiality of those secrets. We are experts in counseling on, and litigating, trade secret matters, including the enforcement of non-disclosure agreements.
In our defense practice, we have successfully represented clients in both liability and damages aspects of trade secret cases. In one challenging liability case, a plaintiff seeking more than $10 million from our client in compensatory damages alone was awarded less than 2% of their demand.
Fraud and Breach of Fiduciary Duty
To recover against fraud, a plaintiff generally needs to prove that a defendant made a false statement that was either knowingly or recklessly made. The law of fraud can apply to ordinary business contracts, as well as investments such as stock transactions. In the world of start-ups or other risky ventures, all parties need to be aware of the liability (personal and corporate) that can arise in connection with representations relating to investment risk. A sometimes-related concept is fiduciary duty, which (unlike ordinary business relationships), involves a duty of high loyalty owed from one person to another. These cases often involve the improper actions of officers and directors of a corporation as they relate to shareholders or creditors.
In one of our plaintiff cases, we obtained recovery for a law firm against the directors of a client, where the client had repeatedly sought legal services while the client corporation was insolvent. When the corporate client refused to pay for its services, we were able to recover from the directors, personally.