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ARTICLE · 11 SEPTEMBER 2009

The Retirement Group, Inc. v. Galante: A Lesson In Avoidable Consequences

Littler Mendelson
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The Court of Appeal for the Fourth District of California recently issued its opinion in The Retirement Group, Inc. v. Galante, 2009 WL 2332008, a trade secrets case where the plaintiff, The Retirement Group, Inc. (TRG) alleged several of its former employees had misappropriated TRG's trade secrets and were using them to solicit TRG's customers.

United StatesEmployment and HR
Littler Mendelson, P.C.
Littler Mendelson, P.C.
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The Court of Appeal for the Fourth District of California recently issued its opinion in The Retirement Group, Inc. v. Galante, 2009 WL 2332008, a trade secrets case where the plaintiff, The Retirement Group, Inc. (TRG) alleged several of its former employees had misappropriated TRG's trade secrets and were using them to solicit TRG's customers. While the opinion adds little to the current body of California law governing trade secrets and post-employment restraints on trade, it provides glaring examples of problems facing trade secret litigants, which can be avoided through proper planning and making careful tactical decisions.

Background and Outcome

To understand fully the significance of the court's holdings, some background regarding the factual and procedural basis of TRG's claims is necessary. TRG was founded in the early 1990s and operated as a Broker/Dealer of financial products and a Registered Investment Advisor. In its capacity as a Registered

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