A law firm specializing in crypto taxation has filed a trade secrets lawsuit in an Illinois US District Court against a competitor and a former employee. The lawsuit alleges that the ex-employee, Justin McCormick, who now works for Founder’s CPA, misappropriated confidential materials from Gordon Law Group through YouTube videos. These materials include templates, client forms, and proprietary information. McCormick worked at Gordon Law for less than nine months and was responsible for creating marketing and training materials for the firm.
In March 2023, McCormick allegedly publicly shared a Google Drive folder containing confidential information belonging to Gordon Law, which included virtual replicas of the firm’s processes, templates, folder structures, and other sensitive materials. Gordon Law claims that McCormick retained spreadsheets, scripts, formulas, and electronic documents that are the firm’s proprietary property. The lawsuit also alleges that McCormick and Founder’s CPA are utilizing Gordon Law’s unique and secret methods and processes in their training materials and services.
The lawsuit provides specific examples of the alleged misappropriation of trade secrets, including videos published on the Founder’s CPA YouTube channel by McCormick. One video, entitled “Crypto Taxes Made Easy: Setting Up Your Inventory,” detailed Gordon Law’s specific process for establishing a client inventory using the firm’s tools and templates. Another video discussed the software tools used by Gordon Law to pull data and generate usable data sets. The videos have since been deleted from the YouTube channel.
Gordon Law is seeking reimbursement for attorney’s fees incurred during the litigation and is pursuing an equitable accounting to determine the total profits lost as a result of the alleged misappropriation of trade secrets. McCormick and Founder’s CPA have not responded to requests for comment. The lawsuit highlights the importance of protecting confidential information and trade secrets in the crypto taxation industry, where competition is fierce and proprietary processes can provide a competitive advantage.
The case underscores the challenges faced by companies in safeguarding their proprietary information from former employees who may seek to use that information for personal gain or to benefit competitors. Trade secrets are a valuable asset for many businesses in the crypto industry, and protecting them through legal action is essential to maintain a competitive edge. The lawsuit serves as a reminder to all employees and businesses to respect confidentiality agreements and intellectual property rights to avoid legal repercussions.
In conclusion, the trade secrets lawsuit filed by Gordon Law Group against a former employee and a competitor in the crypto taxation industry highlights the risks associated with sharing confidential information and the importance of protecting trade secrets. The case brings to light the potential consequences of misappropriating proprietary materials and the legal remedies available to companies facing such actions. By seeking legal recourse, Gordon Law is taking a stand against the alleged misuse of its confidential information and sending a clear message about the consequences of trade secret violations in the competitive crypto industry.
