July 25, 2008 10:09 AM

Ex-Client Hits Thelen Reid with Malpractice Suit

Posted by Zach Lowe

The Recorder is reporting that Delaware-based IVI Smart Technologies is suing Thelen Reid Brown Raysman & Steiner for malpractice, claiming that while Thelen was representing IVI, it was also secretly representing a competitor--and that the firm "actively assisted" that competitor in obtaining IVI's intellectual property.

A Thelen spokesman said the suit is "without merit."

Thelen began representing IVI and two of its subsidiaries in 2004, according to the complaint filed on IVI's behalf by two Dreier partners. But sometime in early 2006, the suit alleges, Thelen entered into a relationship with Michael Gardner, an IVI competitor in the development of fingerprint-verification technologies. The suit alleges that Thelen didn't tell IVI about its work with Gardner and hid Gardner's files in an associate's office.

IVI claims Gardner's relationship with Thelen gave him access to "years of research and development and confidential and proprietary information to launch his competing business." Because of Gardner, IVI's complaint asserts, IVI's market capitalization plummeted from $200 million to $20 million.

IVI and its subsidiaries are suing Thelen for breach of fiduciary duty, legal malpractice, breach of contract, and aiding and abetting breaches of fiduciary duty and contract. Patterson Belknap Webb & Tyler is representing the firm.

Make a comment

Comments (0)
Save & Share: Facebook | Del.ic.ious | | Email |

Reprints & Permissions

Post a comment

If you have a TypeKey or TypePad account, please Sign In

You are currently signed in as (nobody). Sign Out

Name:

Email Address:(Not displayed with comment.)

URL:

Remember personal info?

Comments: