PSD Attorneys Barry Pollack, Peter Duffy and Lauren Riddle successfully defended a New York private equity fund and its North Carolina portfolio company. The North Carolina business court tossed a lawsuit brought by Aym Technologies. The plaintiff claimed that CBC, LLC, a behavioral care company, hired a contractor who helped Aym attempt a vertical integration plan focused on a roll-up of North Carolina healthcare companies. According to Aym’s theories, Aym and a private equity fund managed by Scopia Capital Management then proceeded successfully implement a roll-up strategy. Aym claimed more than $20 million in damages.
The North Carolina business court agreed with CBC and Scopia that Aym failed to prove its plan constituted a trade secret, failed to prove the information was misappropriated, and failed to prove that it had any pertinent enforceable restrictions on the contractor who joined CBC.
The court issued a forty-page decision granting summary judgment.
Scopia and CBC have separate contract claims against Aym that remain pending in New York Supreme Court arising from a non-disclosure agreement that Aym’s principal signed when expressing interest in investing in CBC.