Proskauer Rose Nears Settlement with Former COO in Corporate Espionage Case

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U.S. Law Firm Proskauer Rose Moves Towards Resolution with Former COO Accused of Corporate Espionage

Proskauer Rose, a prominent U.S. law firm, announced on Tuesday that it is on the verge of settling with its former Chief Operating Officer (COO), Jonathan O’Brien. The law firm had previously accused O’Brien of illicitly obtaining a substantial amount of confidential information and attempting to poach Proskauer Rose employees for a competitor.

Settlement in Sight

  

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This prospective settlement would mark the end of a federal lawsuit filed by Proskauer Rose against O’Brien, who had been terminated in December, just as he was preparing to transition to the rival firm, Paul Hastings.

Optimism Surrounds Negotiations

In a letter addressed to U.S. District Judge Analisa Torres in the Manhattan federal court, a legal representative for O’Brien expressed optimism, stating that “the parties are optimistic that they will be able to finalize a settlement agreement within approximately thirty (30) days.” However, the specific terms of the settlement have not been disclosed.

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Case Deadlines Temporarily Suspended

Both parties have jointly requested Judge Torres to temporarily suspend all case deadlines until December 3, when they plan to file a status report. Russell Beck, an attorney from Boston-based Beck Reed Riden, conveyed this information in the letter. As of the time of this writing, there has been no response from Beck or Proskauer Rose’s legal representatives regarding the matter.

Allegations Against O’Brien

Proskauer Rose had alleged that O’Brien downloaded a substantial 34 gigabytes of sensitive data before his intended departure to Paul Hastings. The data in question included financial performance records, client lists, profitability metrics, compensation details, and evaluations of each of Proskauer’s 200-plus partners.

O’Brien’s Defense

In response, O’Brien refuted Proskauer Rose’s allegations, contending that he had downloaded the data to work during a two-week vacation to Mauritius, coinciding with his planned final days at the firm. He denied any intention of taking Proskauer Rose’s proprietary information to another employer.

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Expanding Lawsuit and Additional Accusations

In May, Proskauer Rose broadened its legal action against O’Brien by asserting that he had misused his former position to have the firm cover more than $150,000 in personal expenses and charitable donations connected to himself and his spouse.

Additionally, Proskauer Rose accused O’Brien of collaborating with other former employees who were also set to join Paul Hastings. The firm claimed that O’Brien attempted to recruit them by withholding raises and promotions to incite their discontent, prompting them to leave.

Paul Hastings’ Response

Paul Hastings, who is not named as a defendant in the lawsuit, has stated that O’Brien will not be joining their ranks. Proskauer Rose’s complaint indicated that O’Brien was slated to receive a base salary of $1.5 million and $2.2 million in bonuses from his new employer. Paul Hastings asserted that it neither solicited nor accepted any confidential or proprietary information and declined to comment on “another firm’s personnel dispute.”

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