Charles Schwab & Co. Inc. v. Amon A. Allahyari
Published: Feb. 14, 2009 | Result Date: Dec. 29, 2008 | Filing Date: Jan. 1, 1900 |Case number: 08-00728 Arbitration – Respondent enjoined
Court
Arbitration Forum
Attorneys
Claimant
Michael R. Greco
(Fisher & Phillips LLP)
Respondent
Edward S. Zusman
(Markun, Zusman, Freniere & Compton LLP)
Facts
Claimant Charles Schwab & Co. Inc. filed a statement of claim against respondent Amon Allahyari with respect to his employment with claimant, alleging breach of contract; misappropriation of trade secrets' conversion of confidential business information; violation of the Computer Fraud and Abuse Act; violation of California Penal Code section 502; breach of fiduciary duty and duty of loyalty; and unfair competition.
Damages
The claimant sought a permanent injunction barring respondent from violating the terms of their confidentiality agreement, ordering the return of all claimant's records or information pertaining to its clients obtained as a result of respondent's employment with claimant, purging such information in respondent's possession, and providing any information in computerized electronic form to his counsel within 24 hours' notice for preservation for forensic consultants; compensatory damages for harm caused by respondent's activities; double damages and attorney fees under the California Uniform Trade Secrets Act; punitive damages; attorney fees pursuant to contract.
Result
The panel enjoined respondent from disclosing, reproducing, using, or disseminating any of claimant's confidential information through and including Aug. 15, 2009, including the names, addresses, phone numbers, email addresses, and account information of clients he serviced during his employment with claimants. Respondent was also enjoined from initiating contact with the clients on behalf of himself or any other financial services firm. Within 48 hours of receiving notice of the entry of the order by FINRA, respondent and his representatives were required to purge from their possession and return to claimant all confidential information defined in the attached agreement. With respect to records in electronic form, respondent had to print them, deliver them to claimant's counsel, or purge them. The parties stipulated that respondent violated the terms of the parties' confidentiality agreement, misappropriated claimant's trade secrets, including clients' personal information, and was required to pay claimant liquidated damages with respect to each client that transferred any assets from claimant to a private broker for the purpose of receiving respondent's services.
Other Information
ARBITRATORS: Robert E. Thompson, Walter P. Hitchcock, Alvin L. Fishman. FILING DATE: March 13, 2008.
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