Silicon Valley based company Integral Development Corporation has won an appeal against the Chief Technology Officer (CTO) of EBS BrokerTec, Viral Tolat. The company was in a dispute last year, losing a District Court case.
According to the Ninth Circuit Court of Appeals’ decision, the CTO of EBS BrokerTec copied Integral course code to his own personal device. Furthermore the court states that Tolat attempted to cover up his actions.
The ruling also states that there is a possibility that some of the Palo Alto company’s source code might have been used for the development of EBS Direct. The court cites evidence of damages to Integral’s sales and equity valuation and has mandated a jury trial in California.
Appeals Case Filed in Mid-2016
The misappropriation of trade secrets appeals case was filed in the middle of last year. EBS BrokerTec is a business of NEX Group plc which is an entity that was formed after the sale of ICAP plc’s voice broking unit to Tullett Prebon.
The co-founder of Integral, Viral Tolat, left Integral at the beginning of 2013. The appeal reopens a matter that was considered closed back in 2014. Integral filed a case against Mr Tolat claiming that he had taken the Palo Alto source code and “other trade secrets” just before his move to EBS BrokerTec.
Axia Investments – Take Your Trading to the Next LevelGo to article >>
The case has been assigned to the District Court so that Tolat must face a trial on the merits.
Commenting on the matter, the General Counsel for Integral, Tim Mahota, stated: “We are pleased and agree with the Ninth Circuit’s ruling in the case. We look forward to presenting the evidence of Tolat’s actions to a jury and obtaining a just result for Integral and its shareholders.”
Commenting to Finance Magnates, a spokesperson for EBS stated: “We understand the Court upheld the dismissal of one of Integral’s claims and narrowed others, and we continue to be confident the remainder of the case will be rejected following trial.”
The case is not in any way related to NEX Group, nor EBS Brokertec.
To date there is no factual statements made by any court that that the code has been used outside of Integral.