First Circuit: "Difficult To Compile" But Publicly Available Facts Can Be Trade Secrets

On August 29, 2023, the First Circuit affirmed a ruling from the United States District Court for the District of Massachusetts that Allstate Insurance agents misappropriated trade secrets when they retained spreadsheets that contained confidential information. Allstate Ins. Co. v. Fougere, 79 F.4th 172 (1st Cir. 2023). Significantly, the First Circuit rejected the argument that the spreadsheets could not be trade secrets because most of the information within them is publicly available.

Allstate brought this action against two former "scratch agents" who were based in Massachusetts. When the two agents joined Allstate, they entered into "exclusive agency" agreements, which prohibited them from soliciting, selling, or servicing insurance from other insurance companies without the company's approval. However, Allstate received reports that they were sharing confidential information with competing insurance companies. Allstate then terminated both agents.