"Reed Elsevier, the Massachusetts-based parent of LexisNexis and Seisint, on Thursday filed a complaint in Palm Beach County Circuit Court, alleging that Asher is violating his non-compete agreement by starting a new company, TLFO, in Boca Raton.
In 2004, Asher sold Seisint, his second major database company, to LexisNexis for several hundred million dollars. The deal included a non-compete agreement that is in effect until August.
But, Faith Gay, an attorney for Reed Elsevier, said Asher started violating his five-year non-compete agreement “approximately” two years early. While Asher has said publicly that TLFO is doing only charitable work to help in the hunt for child predators until his non-compete expires, the suit alleges that Asher is already angling for market share.
“He is out, trying to sell a commercial product,” Gay said. “We’re seeking damages for any harm that Asher has caused to our customer base. And, we are seeking a pro rata refund of the $775 million paid for Seisint based upon the length of time Asher has violated his noncompete.”
The suit also alleges that Asher has hired former Seisint employees and is using Seisint’s trade secrets in his new venture."
If Reed Elsevier has correctly described what is going on, then Mr. Asher tried a rather clever way to get around a non-compete agreement. Something to think about when drafting a non-competition agreement.
A reminder, I am taking on new clients for drafting non-compete agreements or litigating non-competition cases. Jsut give me a call at 765-641-7906.
Posts
It would be a clever way to "get around" a Non-Compete if Hank Asher did not have a history of charity where children are concerned.
ReplyDeleteAs it is, he has donated (for more than five years) to the National Center for Missing and Exploited Children. And, for years, has made his systems available for free to NCMEC and America's Most Wanted.
For LexisNexis to claim he is angling for marketshare while not revealing that his Non-Compete does not preclude charity or recognizing that historically he has always given his technology away to save children leads me to believe this suit is a sham and a waste of the Court's time.