Proskauer Reaches Settlement with Ex-COO in Trade Secrets Row

Proskauer has struck a deal with a former executive to end a lawsuit accusing him of stealing a tranche of proprietary records relating to its finances and business strategy.

The firm and Jonathan O’Brien, the firm’s former chief operating officer, reached a “confidential settlement agreement” to resolve the dispute, according to a Thursday letter submitted in New York’s Southern District. The filing asks the court for an order permanently enjoining O’Brien from possessing or using any of the confidential business material he allegedly stole before leaving the firm.

Counsel for Proskauer and O’Brien did not immediately return requests for comment.

Proskauer sued O’Brien, claiming he pilfered electronic files related to the firm’s finances, strategy and billing rates before abruptly resigning in December 2022. The firm claimed O’Brien planned to use the files for a then-planned role at rival Paul Hastings, though the latter firm said in January 2023 O’Brien would not be joining.

O’Brien has denied allegations of stealing, claiming he had copied the firm’s confidential information on two hard drives to work on issues relating to his exit while on vacation on a remote tropical island in the Indian Ocean.

The two sides first informed the court last May that they wanted to discuss a potential settlement. O’Brien, who is a UK citizen and not a lawyer, had served as Proskauer’s chief operating officer for five years before his departure.

The case is Proskauer Rose LLP v. O’Brien, S.D.N.Y., No. 1:22-cv-10918