Paparazzi has secured a preliminary injunction against a former employee and consultants.
As alleged in their original complaint, Paparazzi sought to stop former employee Melissa Sorenson, who was aided by former consultants Geraldine Souza
Kylee Robinette, Morgan Ferguson, Jennifer Dyer, Jaime Robinson, Jennifer Carrol and Kimberly Drewry, from leaking confidential information.
Paparazzi maintains Sorenson first acquired and then continued to acquire its confidential information via unauthorized access. Sorenson then shared the information in a FaceBook group run by former distributors.
Having already secured a Temporary Restraining Order prohibiting the conduct, an injunction hearing was held on May 20th.
Noting that all defendants except Burgess were present, and that none of them had legal representation, the court went on to grant Paparazzi’s requested preliminary injunction.
Condensing several criteria factors, reasoning for the court’s decision is as follows:
After reviewing Paparazzi’s arguments in its briefing and at the Hearing, as well as Defendants’ responses, Paparazzi has shown a substantial likelihood it will succeed on the merits of its breach of contract claim which provides the basis for preliminary injunctive relief.
Paparazzi has demonstrated the likelihood that irreparable harm will occur without injunctive relief.
Here, there is a need to act promptly because Paparazzi’s Confidential Information has been obtained and distributed.
Once distributed, confidential information is very hard to protect and recover. Further, the disclosure of Confidential Information by Defendants has caused reputational damage to Paparazzi that cannot be undone with monetary remedies.
Paparazzi faces continued erosion of its business reputation with its Consultants and customers, the potential loss of business advantages if competitors use Paparazzi’s proprietary Confidential Information, and the real potential that Consultants may terminate their relationships with Paparazzi.
Paparazzi entered into a binding Confidentiality Agreement with Sorenson to protect its Confidential Information and its business.
The public has an interest in upholding contract rights, including confidentiality agreements.
The public also has a significant interest in protecting confidential business information and business reputations.
This factor weighs in favor of Paparazzi receiving injunctive relief.
The granted preliminary injunction makes the previously granted TRO permanent.
Namely, defendants are prohibited from accessing Paparazzi’s confidential information and distributing and/or discussing it.
Given the defendants don’t appear to be interested in defending the case, I’m expecting settlements will be announced at some point. I don’t see this one going to trial.
Update 20th June 2022 – Pending any updates between now and then, on June 10th the court scheduled an October 16th, 2023 trial date.
Still not seeing this one go to trial but that’s the latest.