Standard Register Sues Former Employees for 'Stealing Clients, Trade Secrets'

DAYTON, Ohio—July 1, 2015—A pair of former Standard Register employees are finding themselves being hauled into court by their ex-employers, accused of using company trade secrets and customer contacts to bolster their own Boston-based startup, the Dayton Daily News reported.

The suit, filed in U.S. Bankruptcy Court for the District of Delaware, accuses former Standard Register sales employees Craig Stockmal and Lynn Smith of breach of contract and misappropriation of trade secrets, among other charges. Standard Register maintains the loss of key customers could jeopardize its sale to Taylor Corp., and that the actions of Stockmal and Smith will cause "irreparable harm," the paper said, citing court documents.

According to the lawsuit, the pair are accused of usurping trade secrets, confidential and proprietary information—including customer contacts—in order to drive clients to Focused Impressions, the company founded by Stockmal and Smith. The pair are accused of setting the stage for the new business while still working at Standard Register, the newspaper said.

Standard Register is asking the court to enforce employment agreements with the accused that allegedly preclude them from disclosing trade secrets, or contacting current/prospective customers. The printer seeks actual and punitive damages, plus attorney fees, the Daily News reported.

The accused were employed by Standard Register since the 1980s and had been based out of the Boston office prior to resigning from the bankrupt firm within the past three months.