Gordon Law Group, a law firm specializing in crypto taxation, has filed a trade secrets lawsuit in an Illinois US District Court against a competitor and a former employee. The lawsuit alleges that the former employee, Justin McCormick, misappropriated confidential materials, including templates, client forms, and other proprietary information, through YouTube videos. McCormick, who worked at Gordon Law for less than nine months, is now a senior associate at Founder’s CPA, a company offering similar services to Gordon Law. Gordon Law claims that McCormick publicly shared a Google Drive folder containing confidential information belonging to the firm, including virtual replicas of their processes, templates, and other sensitive materials.
The lawsuit accuses McCormick and Founder’s CPA of fully utilizing Gordon Law’s unique and secret methods and processes by replicating them in training materials and videos. For example, a video published on the Founder’s CPA YouTube channel narrated by McCormick detailed Gordon Law’s specific process for establishing a “client inventory” and used the exact tools and templates employed by the firm. Another video discussed the software tools Gordon Law used to pull data and generate usable data sets. The lawsuit alleges that Founder’s CPA and McCormick have used and continue to use Gordon Law’s trade secrets and confidential information for creating cryptocurrency tax reports for Founder’s CPA clients.
Gordon Law is seeking reimbursement for attorney’s fees incurred during the litigation and pursuing an equitable accounting to determine the total profits lost due to the misappropriation of trade secrets. McCormick and Founder’s CPA have not responded to requests for comment on the lawsuit. The lawsuit highlights the importance of protecting confidential information and trade secrets in the competitive cryptocurrency taxation industry, where proprietary processes and templates play a significant role in delivering high-quality services to clients.
The lawsuit underscores the potential risks and legal consequences of sharing confidential information and trade secrets through public platforms like YouTube. It also raises questions about the ethical implications of using a former employer’s proprietary materials to benefit a competing firm. The case highlights the challenges faced by companies in safeguarding their intellectual property and maintaining a competitive edge in the rapidly evolving cryptocurrency market. It serves as a cautionary tale for employees and businesses operating in the crypto taxation industry to adhere to ethical standards and respect the intellectual property rights of former employers.
The lawsuit sheds light on the complex legal issues surrounding trade secrets and intellectual property in the cryptocurrency industry, where proprietary processes and templates are key assets for companies providing tax services to crypto clients. It underscores the need for robust measures to protect confidential information and trade secrets from misappropriation by competitors and former employees. The outcome of the lawsuit will likely have implications for future cases involving the misuse of trade secrets in the crypto taxation sector and may set a precedent for how courts address similar disputes in the future. Overall, the lawsuit serves as a reminder of the importance of upholding ethical standards and protecting intellectual property in the competitive and rapidly changing landscape of cryptocurrency taxation.
