Cotiviti’s Claims Against Employees-Turned-Competitors Proceed

Healthcare analytics company Cotiviti Inc.'s breach of contract and trade secret claims against employees who resigned to work for a competitor survived dismissal in the Southern District of New York.

The company alleged three of its former employees broke agreements, took protected company information, and engaged in unfair competition when they joined Discovery Health Partners. Cotiviti adequately alleged its trade secrets and breach of contract claims, but its unfair competition claim failed because it was duplicative, the U.S. District Court for the Southern District of New York said.

The company’s “unfair competition claim neither affords relief that their breach of ...