Elliott Greenleaf & Siedzikowski has sued a former partner and his new firm, Stevens & Lee, for allegedly installing software on Elliott Greenleaf's computers that allows the partner to have continued access to the firm's files through the "cloud."
In a statement, Stevens & Lee said the case was "devoid of merit."
Elliott Greenleaf said former Harrisburg office managing shareholder William R. Balaban and two associates abruptly quit Jan. 31 and Feb. 1 to join Stevens & Lee. Elliott Greenleaf said that prior to Balaban leaving the firm, he and others deleted 5 percent of the firm's backup tapes for Harrisburg client files, took 78,000 files from the firm's computer system and installed what is known as "Dropbox" software that enabled Balaban continued access to Elliott Greenleaf's computer network through remote access, according to the complaint filed by name partner John M. Elliott.
This was all done, Elliott Greenleaf alleged in the complaint, in an effort to take some of the firm's clients related to tax lien sales in Pennsylvania and direct the work to Stevens & Lee.
"Defendant Balaban, and those acting in concert with him, secretly configured this software to ensure that over 78,000 files of electronically stored and encrypted information of EGS, and its clients, were stolen and automatically transmitted to a distant 'cloud,' which is, and continues to be, accessed by them from computers outside of EGS," the firm said in the complaint. "This unauthorized software, secretly planted by defendant Balaban into EGS's computer systems, continues to allow defendants a secret, direct, ongoing electronic gateway into the confidential and propriety information and trade secrets of EGS and its clients, to secretly divert and monitor EGS's electronically stored data and information, and access and alter those files, on an ongoing basis to illegally and unfairly compete for business through defendant Stevens & Lee."
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Source: law.com
By: Gina Passarella
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