Halliburton spokeswoman Susie McMichael said the company believes the allegations are unfounded and without merit. "We well vigorously defend our interests in the appropriate forum," she added.
"Halliburton clearly saw our client's innovative product as both a valuable asset and a threat to their own business model," said Gregory Weiss, a shareholder at Leopold Law. "We believe they deliberately ignored their obligations under the confidentiality agreement and misappropriated Ecosphere's highly guarded trade secrets for their own use."
Ecosphere filed its notice with the American Arbitration Association.
The company is publicly traded over the counter as ESPH. Its shares have declined from a high of 75 cents last March to 40 cents in recent days.