Defense Contractor Wins Nearly $23 Million in Trade Secrets Lawsuit Against Former Employees

Innovative Technologies Corp. (ITC) has won nearly $23 million in a trade secret suit against three former employees who competed against ITC while still employed by the Ohio-based defense contractor. The state jury awarded $17 million in punitive damages, in addition to $5.7 million in compensatory damages. The employees also were ordered to return the salary earned in their final year working for ITC, close to $300,000.

According to the lawsuit, filed in May 2003, now-former ITC employees David P. Nicholas, James R. Silcott and Sheila K. Silcott set up Kenton Trace Technologies (KTT) in April 2000 to bid for defense contracts, despite the fact that they were still employed at ITC, had signed confidentially agreements, and were bound by contractual agreements not to compete with ITC.

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