Monday, November 06, 2006, 11/06/2006 12:59:00 PM

AirDefense Announces Consent Injunction and Settlement Obtained from AirTight Networks

By Todd
This just out on the wires - wireless LAN security provider AirDefense, based in Atlanta, just announced that it had obtained a consent injunction based settlement from wireless LAN security provider AirTight Networks, based in Mountain View, California. AirDefense had initially sued AirTight Networks in November, 2005 for, among other things, misappropriation of trade secrets. A sworn declaration by an ex-AirTight Networks employee allegedly identified significant acts of misappropriation by AirTight.

A copy of the amended complaint, for those of you who use PACER, can be found here: https://ecf.cand.uscourts.gov/cgi-bin/login.pl?432343223651739-L_186_0-1. Interestingly, a substantial number of the allegations in the complaint were made "upon information and belief." The allegations appear to be that a former AirDefense employee named Scott Sterelitz provided a USB key to a friend of his who was a salesperson at AirTight Networks. The USB key allegedly contained a confidential list of AirDefense's existing and potential customers and information concerning customer contacts, marketing information, and information concerning the customers' needs and inquiries. We again note the existence of former employees, disgruntled or not, as being a continuing source of trade secrets leaks. AirDefense alleged in its complaint that Sterelitz and the AirTight Networks employee he provided the information to, Steve Skordilis, were personal friends.

The case has been settled on confidential terms.

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