Toast Will Have to Face Lawsuit Over Alleged Trade Secret Theft

Toast Inc. will have to face a business partner’s lawsuit claiming it convinced members of its advisory board to breach confidentiality agreements and steal trade secrets from the restaurant software rival, a federal judge said.

Gratuity Solutions LLC said Toast stole certain “customer-specific” features and configurations from its PayDayPortal gratuity management system that could only be accessed by its customers who agree to confidentiality provisions.

Toast didn’t have access to those trade secrets, but members of its Customer Advisory Board are Gratuity customers who had access to those protected features, the lawsuit said.

Judge Julia E. Kobick of the US ...