September 9, 2010 3:18 PM

Major Lindsey Drops Suit Against Former Recruiter

Posted by Zach Lowe

Update, 9/9/10 at 3:10 p.m.: Upon having pieces of its suit against a former recruiter dismissed, as described in the earlier post below, Major Lindsey has dropped its suit against the recruiter, according to a statement issued by her lawyer. The recruiting firm made the move today, said Robert Anello, name partner at Morvillo, Abramowitz, Grand, Iason, Anello & Bohrer. "MLA stormed into court, and now has stormed out," Anello said in the statement. 

A former Major, Lindsey & Africa recruiter accused of stealing proprietary data on her way out the door must still defend herself from a lawsuit filed by her old firm, after a judge denied her motion to dismiss in full, according to The National Law Journal, one of our sibling pubications. 

The recruiting powerhouse fired Sharon Mahn, a former managing director in MLA's New York office, in November after allegedly discovering that she swiped proprietary job placement information and passed it onto a competitor, the NLJ reports. The firm waited about six months to sue Mahn, eventually filing a sealed complaint in federal district court in Manhattan. Mahn moved to have the case dismissed, arguing that the issues in dispute belong in arbitration, not in court, the NLJ says. Judge Colleen McMahon disagreed in a ruling this week, though she dismissed MLA's claims that Mahn violated the federal Computer Fraud and Abuse Act, according to the NLJ. 

McMahon also raised serious questions about MLA's claim that Mahn violated the Racketeering Influenced and Corrupt Organizations law, saying that "it appears federal charges have been trumped up" in order to get the case into federal court instead of state court, according to the NLJ. Still, McMahon allowed the RICO claim to live for now and kept before her MLA's request for an injunction barring Mahn from using the data she allegedly misappropriated. McMahon agreed with Mahn that the issue of monetary damages belongs in arbitration, the NLJ reports.

Major Lindsey is represented in the suit by Allegis Group general counsel Jeff Reichert. Mahn has Robert Anello of Morvillo, Abramowitz, Grand, Iason, Anello & Boeher, according to the NLJ.

 

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