Monday July 27, 2015
After winning a federal jury trial for the Quantlab companies in a significant trade secrets case in May 2015, Lee Kaplan, Ty Doyle and Alex Wolf have now secured a permanent injunction against the two defendants who elected not to resolve the case prior to trial. After extensive briefing and argument over the scope of the permanent injunction, the Court agreed with Quantlab that defendants Andriy Kuharsky and Emmanuel Mamalakis should be enjoined from use of Quantlab’s trade secrets, including a two-year prohibition on participation in the automated high-frequency trading business without application to and approval from the Court. Click here for a copy of the Court’s injunction. Kuharsky worked for Quantlab as a quantitative researcher for six years. Mamalakis is a Wisconsin attorney/investor who was the CEO of a company set up to exploit Quantlab’s trade secrets.
Following a two-week trial, a jury on May 20, 2015 assessed $12.2 million in damages—$7.2 million against Kuharsky and $5 million against Mamalakis— for misappropriation of trade secrets and conspiracy to misappropriate trade secrets. The Court is expected to enter a final judgment for damages and attorneys’ fees. Quantlab’s win at trial is in addition to $28.5 million each in stipulated judgments reached with four defendants who settled prior to trial.
SKV’s co-counsel from Littler Mendelson were Allan Neighbors and Scott McDonald, who handled important technical witnesses during the trial.
The case is styled Quantlab Technologies Ltd. (BVI) and Quantlab Financial, LLC, vs. Vitaliy Godlevsky, Andriy Kuharsky, Anna Maravina, Ping An, Emmanuel Mamalakis, and SXP Analytics, LLC, Case No. 09-cv-4039 in the United States District Court for the Southern District of Texas, Houston Division, Judge Keith Ellison presiding.