SAN FRANCISCO — Latham & Watkins is back on the hook for a malicious prosecution claim, after a state appellate panel ruled it’s likely the firm’s attorneys filed a trade secrets suit they knew had no merit.

Two former employees of FLIR Systems and Indigo Systems Corp. went after Latham for malicious prosecution in 2012, after defeating a trade secrets suit prosecuted by Latham partner Daniel Schecter.

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