Turret Labs USA Inc. v. CargoSprint LLC

Trade Secrets Suit's SAC Dismissed; Measures to Keep Information Secret Inadequate

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MEMORANDUM & ORDER Turret Labs USA, Inc. (“Turret”) brings this action against CargoSprint, LLC (“CargoSprint”) and its CEO, Joshua Wolf. Turret alleges that the Defendants accessed its proprietary software under false pretenses, then misappropriated its trade secrets. In its first amended complaint, Plaintiff alleged that Defendants’ conduct violated the Racketeer Influenced and Corrupt Organizations Act (“RICO”), the Defend Trade Secrets Act (“DTSA”), and the Computer Fraud and Abuse Act (“CFAA”). That complaint also alleged state-law violations: misappropriation of trade secrets, unfair competition, conversion and defamation. Defendants moved to dismiss the first amended complaint. Following this, Plaintiff moved to amend; they attached a proposed second amended complaint (the “SAC”) to their motion. The proposed SAC would drop the RICO count; it would also include additional factual allegations as to the remaining claims. Defendants opposed the motion to amend as futile. For the sake of efficiency, Plaintiff’s motion to amend is granted and the Court construes Defendants’ motion to dismiss as being made against the SAC. For the reasons that follow, the Court grants that motion to dismiss in part and denies it in part. I. Background The gravamen of Turret’s complaint is that Defendants should never have had access to Turret’s proprietary software, because CargoSprint is not the type of business for which the software was intended — namely, a “freight forwarder.” Nevertheless, Defendants allegedly schemed to obtain such access, and ultimately stole Turret’s trade secrets to develop a competing product. The following facts are alleged in the SAC. Turret developed and owns all rights to a logistics-management software program it calls Dock EnRoll. SAC

17-18, 52. The program is designed to facilitate the hand-off of air cargo arriving in the United States to ground transporters, and the payment of associated storage and handling fees. Id.

Turret Labs USA Inc. v. CargoSprint LLC

Trade Secrets Suit's SAC Dismissed; Measures to Keep Information Secret Inadequate

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