TransPerfect Trade Secrets Lawsuit Slammed by Defendant as 'Farcical'
TransPerfect's suit stems from the leading translation-services firm's forced sale in 2017.
June 26, 2019 at 06:11 PM
4 minute read
Lionbridge Technologies Inc. on Wednesday slammed as “farcical” a lawsuit alleging that it and private equity firm H.I.G. had made a sham bid to buy rival TransPerfect Global Inc. in order to obtain its trade secrets.
In a 32-page filing, Lionbridge and H.I.G.'s middle-market arm asked U.S. District Judge Denise L. Cote of the Southern District of New York to dismiss TransPerfect's suit, which seeks hundreds of millions of dollars in damages stemming from the leading translation-services firm's forced sale in 2017.
The complaint, filed in April, accuses Lionbridge and H.I.G. of using the court-ordered auction to steal TransPerfect's proprietary information. According to the filing, Lionbridge was able to download lists of TransPerfect's top clients, pricing information, commission schedules, employee files and sales strategies, and then used the data to revamp its business.
TransPerfect, which has asked for at least $100 million in restitution, said Lionbridge has ignored its demands to return or destroy any information it allegedly obtained from its data room.
On Wednesday, attorneys for Lionbridge and H.I.G. said the complaint offered no support to TransPerfect's contention that the information it viewed in the bidding process had actually qualified as trade secrets. TransPerfect, they said, had not cited any steps it took to preserve the confidentiality of its data or to establish the value of the allegedly “proprietary information.”
“Plaintiff's complaint is legally defective in virtually every respect,” Kirkland & Ellis attorney Aaron Marks wrote in the filing.
The motion also highlighted what it called TransPerfect co-founder and CEO Philip Shawe's “unhealthy obsession” with a auction process that he ultimately won. His winning bid of $770 million was ultimately approved by the Delaware Court of Chancery and later upheld by the state Supreme Court.
Shawe, however, has unleashed a series of lawsuits directed at his co-founder's attorneys, the Delaware judge who presided over his case and the custodian appointed to oversee the sale. In December 2017, a Delaware federal judge issued a “strike two” against Shawe over his litigation tactics and threatened a nationwide filing injunction if he continued to attack the Delaware rulings.
“Now, in a flagrant effort to retaliate against a competitor for participating in the auction process, Shawe has initiated this action alleging, without any basis, the farcical claim that H.I.G./Lionbridge … participated in the auction only in order to access TransPerfect proprietary information and to compete unfairly,” Lionbridge said in its filing.
Martin Russo, an attorney for Shawe and TransPerfect, noted that Shawe was not a party to the current lawsuit. He said Lionbridge and H.I.G. were simply attempting to distract “from their own alleged misconduct, which is alleged in the complaint, and trying to prejudice the federal judge.”
A spokesman for Lionbridge, meanwhile, blasted Shawe as a “serial litigant who is afraid of fair competition.”
“TransPerfect's April filing against Lionbridge is the most recent example in a series of nuisance suits arising from the extraordinary forced sale of the company ordered by a Delaware Court that was precipitated by Shawe's serial and egregious misbehavior,” spokesman Paul Caminiti said in a statement.
“TransPerfect's action is filled with false and meritless claims and we look forward to prevailing in both court and the market,” he said.
Russo, in response, dismissed the allegations of “frivolity,” saying Lionbridge's attorneys could have brought a claim if they had “enough confidence in their rhetoric to do so.” In a statement, Russo said, Lionbridge still held TransPerfect's confidential information and had yet to issue a denial to the company's claims.
“Having resorted to unfair competition through the misappropriation and use of TransPerfect's trade secrets, Lionbridge nonetheless continues to fall behind as TransPerfect advances. Cheaters never win,” he said.
TransPerfect is represented by Russo and Sarah Y. Khurana of Kruzhkov Russo and Andrew Goodman of Garvey Schubert Barer.
Lionbridge and H.I.G. are represented by Marks and Michael Murray of Kirkland & Ellis and Scott M. Kessler and Jason S. Oletsky of Akerman.
The case is captioned Lionbridge v. TransPerfect.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllFive Years After Vega Much Remains Unsettled in Pay Frequency Litigation
Spotify GC Steps Down, Opts to 'Step Away From Full-Time Corporate Life'
2 minute readDechert Sues Former Attorney For Not Returning Compensation
Trending Stories
- 1Jury Seated in Glynn County Trial of Ex-Prosecutor Accused of Shielding Ahmaud Arbery's Killers
- 2Ex-Archegos CFO Gets 8-Year Prison Sentence for Fraud Scheme
- 3Judges Split Over Whether Indigent Prisoners Bringing Suit Must Each Pay Filing Fee
- 4Law Firms Report Wide Growth, Successful Billing Rate Increases and Less Merger Interest
- 5CLOs Face Mounting Pressure as Risks Mushroom and Job Duties Expand
Who Got The Work
J. Brugh Lower of Gibbons has entered an appearance for industrial equipment supplier Devco Corporation in a pending trademark infringement lawsuit. The suit, accusing the defendant of selling knock-off Graco products, was filed Dec. 18 in New Jersey District Court by Rivkin Radler on behalf of Graco Inc. and Graco Minnesota. The case, assigned to U.S. District Judge Zahid N. Quraishi, is 3:24-cv-11294, Graco Inc. et al v. Devco Corporation.
Who Got The Work
Rebecca Maller-Stein and Kent A. Yalowitz of Arnold & Porter Kaye Scholer have entered their appearances for Hanaco Venture Capital and its executives, Lior Prosor and David Frankel, in a pending securities lawsuit. The action, filed on Dec. 24 in New York Southern District Court by Zell, Aron & Co. on behalf of Goldeneye Advisors, accuses the defendants of negligently and fraudulently managing the plaintiff's $1 million investment. The case, assigned to U.S. District Judge Vernon S. Broderick, is 1:24-cv-09918, Goldeneye Advisors, LLC v. Hanaco Venture Capital, Ltd. et al.
Who Got The Work
Attorneys from A&O Shearman has stepped in as defense counsel for Toronto-Dominion Bank and other defendants in a pending securities class action. The suit, filed Dec. 11 in New York Southern District Court by Bleichmar Fonti & Auld, accuses the defendants of concealing the bank's 'pervasive' deficiencies in regards to its compliance with the Bank Secrecy Act and the quality of its anti-money laundering controls. The case, assigned to U.S. District Judge Arun Subramanian, is 1:24-cv-09445, Gonzalez v. The Toronto-Dominion Bank et al.
Who Got The Work
Crown Castle International, a Pennsylvania company providing shared communications infrastructure, has turned to Luke D. Wolf of Gordon Rees Scully Mansukhani to fend off a pending breach-of-contract lawsuit. The court action, filed Nov. 25 in Michigan Eastern District Court by Hooper Hathaway PC on behalf of The Town Residences LLC, accuses Crown Castle of failing to transfer approximately $30,000 in utility payments from T-Mobile in breach of a roof-top lease and assignment agreement. The case, assigned to U.S. District Judge Susan K. Declercq, is 2:24-cv-13131, The Town Residences LLC v. T-Mobile US, Inc. et al.
Who Got The Work
Wilfred P. Coronato and Daniel M. Schwartz of McCarter & English have stepped in as defense counsel to Electrolux Home Products Inc. in a pending product liability lawsuit. The court action, filed Nov. 26 in New York Eastern District Court by Poulos Lopiccolo PC and Nagel Rice LLP on behalf of David Stern, alleges that the defendant's refrigerators’ drawers and shelving repeatedly break and fall apart within months after purchase. The case, assigned to U.S. District Judge Joan M. Azrack, is 2:24-cv-08204, Stern v. Electrolux Home Products, Inc.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250