Envestnet Should Face Trial in Trade Secrets Suit, Judge Says

A jury should decide whether Envestnet Inc. misappropriated FinancialApps LLC’s trade secrets to develop a replica product that generates financial reports for issuing loans, a magistrate judge said.

Evidence suggests that certain Envestnet executives may have played an oversight role at subsidiary Yodlee Inc. and engaged in Yodlee’s alleged misappropriation on behalf of Envestnet, creating factual disputes best suited for a jury, Magistrate Judge Christopher J. Burke said in a report and recommendation that was unsealed on Thursday.

The matter now goes to US District Court for the District of Delaware Judge Gregory B. Williams for final disposition.

FinApps and ...