Trade Secret and Prime-Sub Damages

Brief

Plaintiffs specialize in High Altitude Electro-Magnetic Pulse (“HEMP”) testing and maintenance, which is necessary to prevent EMPs from damaging mission-critical military equipment. The Defendant did not have the ability to offer HEMP-related services; therefore, the Defendant subcontracted with Plaintiffs to provide HEMP services to the Air Force. Plaintiffs argued that the Defendant then helped “rogue” Plaintiffs’ employees to steal Plaintiffs’s trade secrets and redirect bids for HEMP services to a company formed by former Plaintiff’s employees.

What we did

HKA experts were retained by prime contractor Defendant to rebut damages asserted by subcontractor Plaintiff related to Defendant’s alleged improper award of subcontracts to a small business competitor of Plaintiff formed by former Plaintiff employees.  Our experts also opined on Defendant’s purchasing practices and their compliance with FAR Part 15 and how those practices were typical of practices in the industry. HKA experts issued an expert report and provided testimony in deposition.

Outcomes

After extended litigation in three courts, spanning over a decade, and after full discovery in this case, the Court granted Defendant’s summary judgment motion in March 2018.  The case was later appealed and remanded, with an expected trial in 2020.