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Major Lindsey & Africa LLC has filed a notice to withdraw its lawsuit against a former recruiter, following sharp criticism from a federal judge about the validity of the search firm’s case. Attorneys for the company on Thursday submitted a notice of dismissal to U.S. District Judge Colleen McMahon in the Southern District of New York. The notice said that Major Lindsey was withdrawing its claims, without prejudice, against Sharon Mahn so that it could reassert claims in arbitration or state court. The move came two days after McMahon issued an order warning Major Lindsey that she was not interested in entertaining any “bogus” claims or “trumped up” charges. McMahon’s order allowed the company’s claim for an injunctive relief to remain in federal court, although she said that it was “highly unlikely” that it would be able to obtain such relief. Major Lindsey filed suit in May against Mahn, a former managing director of the partner practice group in the firm’s New York office. The lawsuit, filed under seal, alleged that Mahn violated the Racketeering Influenced and Corrupt Organizations Act, among other claims. The company asserted that Mahn took proprietary information about attorney job openings from its computers and gave it to at least one competing placement firm, Kagan Consultants Inc. Parker Leland LLC was another defendant. The company fired Mahn in November after it allegedly discovered e-mails with confidential placement information that she had sent to at least one of the defendants. Mahn’s attorney, Robert Anello, said in a written statement issued through a spokeswoman that Major Lindsey’s case was based on “unfounded allegations.” “MLA stormed into court, and has now stormed out,” he said. Anello is an attorney at Morvillo, Abramowitz, Grand, Iason, Anello & Bohrer in New York. The notice to dismiss was filed by David Warner, an attorney with Littler Mendelson. Jeff Reichert, group general counsel for Allegis Group Inc., the parent company of Major Lindsey, declined to comment. McMahon on Tuesday threw out Major Lindsey’s claims under the Computer Fraud and Abuse Act and denied the company’s motion for expedited discovery. The judge said that she could consider only claims for injunctive relief and “not a dime in damages.” Damages claims, she wrote, belonged in the pending arbitration action between the parties.

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