Payscale Wins Revival of Noncompete Dispute Againt Ex-Executive

Payscale Inc.‘s lawsuit against its former sales director was revived Thursday by the Delaware Supreme Court, which found a lower court prematurely dismissed the software company’s claims that its ex-employee may have disclosed confidential information to a competitor.

The Delaware Chancery Court “failed to credit Payscale’s factual allegations and the reasonable inferences to be drawn from them,” Justice Abigail M. LeGrow said in a 21-page opinion reversing the dismissal and directing further development of the case.

“Our holding is limited to whether the employer stated a reasonably conceivable claim for relief,” she said. “We express no view on whether ...