E-Filing Error Can Destroy Trade Secret Status

Law360, New York (August 7, 2015, 10:25 AM EDT) -- First rule of thumb in trade secrets litigation? A trade secret must be kept secret. It is painfully obvious, but modern practitioners must not grow complacent due to the convenience of electronic filing. Although trade secrets law does not command absolute secrecy, a recent e-filing snafu in HMS Holdings Corp. v. Arendt offers a cautionary tale from New York on how one botched upload could jeopardize a client's most prized possession.

In August 2014, plaintiffs HMS Holdings Corp., Health Management Systems Inc. and HMS Business Services Inc. (collectively "HMS") sued three former employees for misappropriation of trade secrets, and sued one...

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