“Prior Restraint” Doctrine May Preclude Enjoining A Newspaper From Publishing Misappropriated Trade Secrets

A reporter for a business publication somehow obtained information contained in a privately held company’s confidential interim financial statements. As the reporter was about to disseminate that information in an email alert to the publication’s subscribers, the company sued, described the financials as trade secrets belonging to the company, and obtained from a Louisiana state court judge a TRO enjoining issuance of the email. The defendant removed the case to the Eastern District of Louisiana federal court where a magistrate judge conducted a preliminary injunction hearing and then ruled that freedom of speech and of the press guaranteed by the First Amendment trumped the company’s efforts to prevent a potential violation of the Louisiana Uniform Trade Secrets Act. Rain CII Carbon, LLC v. Kurzy, Civ. Ac. No. 12-2014 (E.D. La., Aug. 20, 2012).

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