Hedge Fund Vendor Failed to Prove Damages in Trade Secrets Case

Hedge fund administration company NAV Consulting Inc. failed to prove a former employee was an illegal competitor who used trade secrets and caused economic damages, an Illinois appellate panel ruled Thursday.

The Illinois-based company didn’t show it suffered specific damages such as lost customers or profits, Justice LeRoy Martin wrote for a unanimous three justice panel, of NAV’s allegations of tortious interference with an employment contract and trade secret misappropriation.

“A plaintiff must allege facts sufficient to bring a claim within a legally recognized cause of action,” Martin wrote. “Long lists of broad items do not suffice.”

Martin also said ...