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Principia Partners LLC v. Swap Fin. Grp. LLC

DTSA Violation Claim Dismissed; Not Shown How Software's Use Breached Secrecy

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ORDER Plaintiff, Principia Partners, LLC, brings this action against Defendant, Swap Financial Group, LLC (“SFG”), alleging one federal law claim under the Defend Trade Secrets Act (“DTSA”), 18 U.S.C. §1839(3), and five state law claims: breach of contract, breach of duty of good faith and fair dealing, misappropriation of trade secrets, fraud, and negligent misrepresentation. Compl.

90-177, ECF No. 7. Defendant moves to dismiss all except the breach of contract claim pursuant to Federal Rule of Civil Procedure 12(b)(6) for failure to state a claim, and also moves to dismiss all state law claims pursuant to Rule 12(b)(1) for lack of subject matter jurisdiction in the event that the Court dismisses Plaintiff’s only federal claim. Def. Mot. at 1, ECF No. 28. For the reasons stated below, Defendant’s motion is GRANTED. BACKGROUND The following facts are taken from the complaint and are presumed to be true for the purposes of this motion. See ATSI Commc’ns, Inc. v. Shaar Fund, Ltd., 493 F.3d 87, 98 (2d Cir. 2007). Plaintiff provides software services for the management of structured finance and derivative portfolios. Compl. 1. Plaintiff licenses such software, including access to software known as Principia Analytic System (“PAS” or the “software”). Id. 32. PAS can be used to assist with, among other things, valuing swaps.¹ On March 17, 2004, Defendant, a bond and swap advisor company, contracted with Plaintiff for access to PAS (the “Contract”). Id. 34. The Contract required, among other things, that Defendant pay Plaintiff two fees: (i) a minimum quarterly fee, and (ii) a portion of the revenue Defendant generated from reports created by PAS. Id.

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