2nd Circuit Panel Affirms Denial Of Arbitration In Trade Secrets Lawsuit

Mealey's (September 7, 2018, 12:43 PM EDT) -- NEW YORK — A Second Circuit U.S. Court of Appeals panel on Sept. 6 ruled that a company that allegedly poached employees from its competitor and induced them to provide the company with the competitor’s trade secrets failed to show that arbitration of claims in a trade secret misappropriation lawsuit is necessary under the doctrine of equitable estoppel because the company has failed to plead that a “close business and operational relationship” existed with the competitor’s former employees, requiring that the claims be submitted for arbitration (Medidata Solutions Inc., et al. v. Veeva Systems Inc., Nos. 17-2694 and 18-681, 2nd Cir., 2018 U.S. App. LEXIS 25268)....