Professional Documents
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COMMONWEALTH O F M A S S A ^ H U S ^ T S
M I D D L E S E X C O U N T Y , ss.
S U P ^ R I O R X J O m t T DEBARKMENT
V E R I F I E D COMPLAINT
Plaintiff A123 Systems L L C ("AI23"), by and through undersigned counsel, for
its Verified Complaint against defendants Mujeeb Ijaz, Don Dafoe, Michael Erickson,
Dapeng Wang, Indrajeet Thorat (the "Individual
("Apple") (collectively, "Defendants"),
Defendants"),
alleges as follows:
PARTIES
1.
<KrM.'!45fi8.1)
3.
Apple i n California.
5.
of Apple i n California.
6.
Apple i n California
JURISDICTION AND V E N U E
8.
214, 1.
9.
c. 223A, 3. Fxirther, this Court has personal jurisdiction over the Individual
D e f e n d a n t s because t h e y a g r e e d i n t h e i r r e s p e c t i v e a g r e e m e n t s w i t h A123 t o submit to
(K0434568.1)
BACKGROUND FACTS
The Individual
11.
Defendants'
Roles at A123.
among other things, developing and testing new battery technology and products and
validating and testing existing battery technology and products.
13.
Defendants Erickson, Wang, and Thorat are PhD scientists and while
employed by A123 were each i n charge of separate projects related to Al23's business.
14.
defendant Ijaz. Defendant Ijaz was i n charge of A123's Waltham, Massachusetts office
and, therefore, acted as the head of A123's System Venture Technologies division.
The Individual
Obligations.
15.
Defendants'
Non-Compete,
Non-Solicit,
and
Non-Disclosure
{K04.'S4568.1|
1(>.
A123 i n its battery business for a reasonable time period following the termination of
their employment. Specifically, they agreed that, for a period of one year after the
termination of their employment w i t h A123, they would not:
Engage i n any business or enterprise ... that is competitive w i t h the
Company's business, including but not limited to any business or
enterprise that develops, manufactures, markets, or sells any product or
service that competes w i t h any product or service
developed,
manufactured, marketed, sold or provided, or planned to be developed,
manufactured, marketed, sold or provided, by the Company while the
[Individual Defendants were] employed by the Company; or
(K0434568.1)
employees. Specifically, they agreed that, for a period of one year after the termination
of their employment w i t h A123, they would not:
Either alone or i n association w i t h others (i) solicit, or permit any
organization directly or indirectly controlled by the Employee to solicit,
any employee of the Company to leave the employ of the Company, or
(ii) solicit for employment, hire or engage as an independent contractor,
or permit any organization
directly or indirectly controlled by the
Employee to solicit for employment, hire or engage as an independent
contractor, any person who was employed by the Company at the time
of the termination
or cessation
of the [Individual Defendants']
employment w i t h the Company.
Non-Disclosure, Non-Competition and Non-Solicitation Agreement at 1|4(b).
21.
quoted restrictions on their post-employment activity were necessary for the protection
of A123, that the breach of any of those restrictions would cause irreparable harm to
A123, and that A123 would be entitled to an injunction restraining any such breach.
Non-Disclosure, Non-Competition and Non-Solicitation Agreement at l|9(g).
22.
{K04.'S4568.1!
of A123's
Employees.
To date, Apple has poached the five (5) Individual Defendants from A123.
26.
terminated their employment w i t h A123 and began working for Apple w i t h i n the last
month. Defendant Ijaz ceased working w i t h A123 and began working for Apple i n June
of 2014,
28.
Upon information and belief, and i n direct violation of his Non -Disclosure,
A123's belief is informed by, among other things, defendant Dafoe having
IK0434568.1!
30.
Upon information and belief, this e-mail confirms that defendant Dafoe is
working as a direct report to defendant Ijaz, as was the case when both were employed
by A123.
32.
Apple, defendants Dafoe, Erickson, Wang, and Thorat report directly to defendant Ijaz,
as was the case when the Individual Defendants were employed by A123.
33.
improperly solicited defendants Erickson, Wang, and Thorat to leave A123 and join
Apple, i n violation of their Non-Disclosure, Non-Competition and Non-Solicitation
Agreements.
34.
projects that each was individually and principally responsible for have been effectively
shut down for lack of PhD employees to replace these defendants.
35.
A123 has lost the substantial investment i t made i n each of these employees, and is
now forced to scramble to find replacements at substantial cost to A123.
36.
(K0434B68.1)
37.
A123's belief is informed by, among other things, defendant Ijaz's contact
A123 has learned from SiNode Systems that defendant Ijaz solicited i t on
behalf of Apple.
41.
behalf of Apple is at least substantially similar (if not identical) to his work at A123.
42.
battery science, technology, and/or products that is substantially similar i f not identical
to the field they worked i n at A123 is further informed Apple's job description for an
"Engineering Program Manager, Battery Technology." This job description generally
describes the type of work that the Individual Defendants performed while employed by
A123. A copy of this job description is attached hereto as Exhibit G.
43.
{K(M345(i8.l(
Non-Disclosure,
Non-Competition
remind h i m of his obligations under his Non-Disclosure, Non-Competition and NonSolicitation Agreement and to request that he provide A123 w i t h assurances that h e
has and w i l l continue to adhere to that agreement. A copy of this correspondence is
attached hereto as Exhibit I . Defendant Ijaz never responded or provided the requested
assurances.
47.
2015, but failed to provide any assurance that defendant Ijaz has not and w i l l not
disclose or utilize A123's Proprietary Information, improperly solicit A123 employees,
or improperly compete w i t h A123. A copy of this correspondence is attached hereto as
K x h i b i t J.
48.
{K04S4668.1)
A123 also advised Apple that its continued employment of former A123
employees may constitute, among other things, unlawful interference w i t h A123's
contractual rights under the Non-Disclosure, Non-Competition and Non-Solicitation
Agreements.
50.
A123 demanded that Apple advise i t as to what defendants Ijaz and Dafoe
were working on at Apple and whether or not said work was similar to the work they
performed on behalf of A123.
51.
52.
Both before and after A123's contact with Apple, Apple has openly
disregarded A123's concerns and its rights under the Individual Defendants' NonDisclosure, Non-Competition and Non-Solicitation Agreements by employing
defendants Ijaz and Dafoe.
53.
rights by hiring defendants Erickson, Wang, and Thorat, despite knowledge of these
defendants' Non-Disclosure, Non-Competition and Non-Solicitation Agreements.
(K0434568.1)
10
w i t h A123, they would not engage i n any business or enterprise that is competitive w i t h
the Company's business, including but not limited to any business or enterprise that
develops, manufactures, markets, or sells any product or service that competes w i t h
any product or service marketing, sold or provided by A123.
56.
57.
J
SECOND CAUSE OF ACTION
B R E A C H O F CONTRACT - VIOLATION O F E M P L O Y E E NON-SOLICITATION
COVENANT (INDIVIDUAL DEFENDANTS)
59.
employees were still employed by A123, for the purpose of inducing them to cease their
employment w i t h A 1 2 3 and/or become employees of and p e r f o r m services for A p p l e ,
Individual Defendants have breached the employee non-solicitation provisions of their
Non-Disclosure, Non-Competition and Non-Solicitation Agreements.
61.
protect the continuity of its operations, its ability to provide service to its clients, its
{K0434S68.1)
11
goodwill and its competitive position i n the industry. A123 has also promulgated
various policies and procedures designed to further protect its confidential information.
62.
Agreements, each of the Individual Defendants expressly admitted that any breach of
its terms could cause A123 irreparable harm and further agreed that A123 would be
entitled to seek injunctive relief and monetary damages to enforce i t .
by the non-disclosure provisions of their Non-Disclosure, Non-Competition and NonSolicitation Agreements and disclosing that information and those documents and files
outside of A123, the Individual Defendants have each breached their Non-Disclosure,
Non-Competition and Non-Solicitation Agreements.
65.
its relationships w i t h its clients and those clients' confidential information as well as to
p r o t e c t i t s c o m p e t i t i v n p o s i t i o n i n t h e i n d u s t r y . A 1 2 3 has also p r o m u l g a t e d v a r i o u s
policies a n d procedures designed to f u r t h e r protect its confidential i n f o r m a t i o n
66.
Agreements, each of the Individual Defendants expressly admitted that any breach of
its terms could cause A123 irreparable harm and further agreed that A123 would be
entitled to seek injunctive relief and monetary damages to enforce i t .
(K04.'$45G8.1|
12
Defendants. They all worked i n A123's Venture Technologies division, which conducts
research and development related to A123's lithium-ion battery technology business.
69.
and well-known to Apple. Regardless of this well-known fact, Apple sought to "raid"
Al23's Venture Technologies division by hiring the Individual Defendants.
70.
Apple knew of the economic benefit that A123 received from the business
activities of the Individual Defendants and sought to take those benefits by openly
raiding A l 2 3 ' s Venture Technologies division.
71.
After his departure from A123, Ijaz participated i n Apple's improper and
tortious interference i n the business relationship between A123 and the other
Individual Defendants.
73.
{K0434568.1J
13
75.
Defendants' actions are unfair and deceptive and constitute knowing and
J
SIXTH CAUSE O F ACTION
M I S A P P R O P R I A T I O N O F T R A D E S E C R E T S / M A S S G E N . L A W S 93 ( A L L
DEFENDANTS)
80.
Upon information and belief, Defendants have stolen, copied, and carried
away confidential and proprietary information and trade secrets of A123 w i t h the
intent to disclose i t and convert i t to their own use.
82.
U p o n i n f o r m a t i o n a n d belief, D e f e n d a n t s h a v e m i a a p p r o p r i a t c d
information and trade secrets as set forth above constitutes a violation of M.G.L. ch. 93,
42 and 42AL
{K0434568.1)
14
84.
As a result of Defendants' actions set forth above, A123 has suffered and
continues to suffer substantial, immediate and irreparable harm and damages. A123 is
entitled to actual and compensatory damages as well as up to double damages for
Defendants' willful conduct and equitable relief.
Technology divisions of A123 by enticing the Individual Defendants to resign from A123
and join Apple.
87.
89.
reasonably have expected to make from the Individual Defendant's business activities
during the time they remained employed by A123.
{K0434568.1}
15
enter judgment for A123 and against Defendants on all Counts o f this Complaint;
2.
enjoin Individual Defendants, for one-year from the date o f such order, from
participating, directly or indirectly, on their own behalf or as an employee o f any business entity,
in any capacity, in any business or activity which is in direct or indirect competition with A123,
which intends to compete directly or indirectly with A123 or which otherwise provides any
products or services similar to any products or services provided or proposed to be offered by
A123;
3.
enjoin Individual Defendants, for one-year from the date o f such order, from
Technologies division;
6.
award A 123 Its costs and attorney tees incurred in connection with tins action,
and such other and further relief as the Court deems just and proper.
!K0-1.M5(J8.1|
16
VERIFICATION
1, Patrick. Hurley, depose and say that 1 am the Chief Technology Officer for plaintiff A123
Systems L L C ' s System V e n t u r e Technologies d i v i s i o n , that 1 have read the foregoing
Verified Complaint and that the statements o f fact contained therein are true, except for those
statements made on information and belief, and, as to those, 1 believe them to be true. This
statement is made under the pains and penalties o f perjury.
i
PATRICK HURLEY
17
A123 SYSTEMS L L C
B y its attorneys,
{K0434568.1}
18
ft.
COVER SHEET
COUNTY OF
PLAINTIFF(S)
DEFENDANT(S)
City
Boston
Tel.
State MA
+1 (617)832-1000
Zip Code
BBO#
State
City
02210
Zip Code
559,954
C O D E NO.
_ _
Address
MIDDLESEX
A 1 2 3 S y s terns L L C
Plaintiff Atty
nnrx-FT NO
IS T H I S A JURY CASE?
(
I Yes
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No
The following is a full, itemized and detailed statement of the facts on which plaintiff relies to determine
money damages. For this form, disregard double or treble damage claims; indicate single damages only.
TORT
(Attach additional
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Documented medical expenses to date: IN
1. Total hospital expenses
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2.
Total doctor expenses
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3.
> . . . P . . expenses
F E B - 6 2015
4.
Total physical therapy expenses
5.
Total other expenses (describe)
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Subtotal
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V.
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Brief description of plaintiffs injury, including nature and extent of injury (describe)
s
$"
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Total $
CONTRACT CLAIMS
(Attach additional sheets as necessary)
Provide a detailed description of claim(s):
Breach of contract by violation of non-compete covenant, violation of employee nonsolicitation covenant and violation of non-disclosure covenant; tortious interference; unfair
competition and misappropriation of trade secrets under MGL 93A; raiding.
'
g
TOTAL
S.
P L E A S E I D E N T I F Y , B Y C A S E N U M B E R , N A M E A N D C O U N T Y , A N Y R E L A T E D A C T I O N P E N T J I N T T N ^ HL c . t p g p . n p
COURT DEPARTMENT
Al hereby certify that 1 have complied with the requirements of Rule S of the Supreme Judicial Court Uniform )<^Mc3Jm~rr"~~
Rule 1:18) requiring that I provide my clients vyiih inforttiatiwi about court-connected dispute resolution services and Hi* . '
S P U t C
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