Sadis Defeats Motions to Dismiss $280 Million of Trade Secret Claims Alleging Defendants Stole Trade Secret Source Code

           Sadis & Goldberg (“Sadis”) recently defeated motions to dismiss claims for $280 million alleging that defendants Inter & Co., Inc. (“Inter”), Inter & Co. Payments, Inc. f/k/a Pronto Money Transfer Inc. (“Pontual”), Eliran Grushkowsky, and Fernando Fayzano  stole its client’s trade secrets. The lawsuit, which is pending in California state court, alleges that the defendants misappropriated plaintiff Forex Express Corp.’s (“WireCash”) valuable trade secret source code that was used to run WireCash’s industry-leading online money remittance business.[1]

            In denying the motions to dismiss, the Court sustained WireCash’s trade secret theft claim against all defendants.[2] The Court also sustained WireCash’s claim alleging that Pontual and Fayzano aided and abetted Grushkowsky’s breach of his fiduciary duties to WireCash and its claims alleging that Grushkowsky violated the California Computer Fraud and Abuse Act and breached his fiduciary duties to WireCash. The Court also denied Grushkowsky’s motion to strike WireCash’s request for punitive damages because WireCash “alleged facts establishing that Grushkowsky (1) willfully and maliciously misappropriated [WireCash’s] trade secrets and (2) is guilty of malice.”[3] The case is scheduled for trial in May 2025.

            The Sadis litigation team was led by Doug Hirsch, along with partners Jennifer Rossan and Jim Ancone and associates Scott Ferrier and Kady Reilly and paralegal Desi Ilieva. If you have any questions about trade secret theft issues, please contact Doug Hirsch at dhirsch@sadis.com or (212) 573-6670.