Carlyle Faces Trade Secrets Suit Over Contractor Affiliate (2)

Gemedy Inc. sued a rival software company and its private equity backers at Carlyle Group Inc. over claims they misappropriated and misused its artificial intelligence technology to win federal defense contracts allegedly worth $1 billion.

The lawsuit, made public Tuesday, targets nearly a dozen Carlyle-related entities, including several affiliates of the contractor business, Two Six Labs LLC, a Carlyle portfolio company. It accuses them of a “brazen, systematic, and ongoing scheme to misappropriate and exploit Gemedy’s valuable trade secrets.”

Under pressure from Carlyle, Two Six developed new products that incorporated Gemedy’s “incredibly valuable” intellectual property, such as its AI source ...