Transitions in Employment

Archive for the ‘Non-Disclosure & Confidentiality’ Category

In the arena of post-employment non-solicitation/confidentiality litigation, employers and employees should be aware of a November 15, 2012 decision by the First Department of the Appellate Division of the Supreme Court of New York in AllianceBernstein LP v. Atha. In this case, Atha, a financial analyst who left AllianceBernstein (AB) for Morgan Stanley, was sued by AB, claiming he violated the confidentiality provisions of his employment agreement by taking confidential information, including client lists, to Morgan Stanley for the purpose of soliciting those clients.  As part of its action for a TRO, AB sought and the lower court ordered that defendant turn over his iPhone to determine the scope of confidential information retained by Atha. The Appellate Division reversed holding that “[t]he iPhone would disclose irrelevant information that might include privileged communications or confidential information.” Notwithstanding, the court’s decision, it still ordered the defendant to provide his iPhone for an in camera or in court review to “ensure that only relevant, non-privileged information will be disclosed …” (quotes from the decision of the Appellate Division, First Department).

Several reports have been published indicating that Greg Smith, the former Goldman Sachs employee who resigned on the Op-Ed page of the New York Times last week, has been approached by several literary agents seeking a “tell-all” book about Goldman.  Meanwhile, in the Wall Street Journal, Francesco Guerrera quoted a Wall Street executive, in “Wall Street Can Learn from the Goldman Flap,”  saying, “Every firm has 100 Greg Smith’s waiting to happen.”

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