Coffee and trade secrets – two of my favorite things!
This case is another reminder that trade secret risks often stem from inside your own organization. The Dairy Farmers of America (DFA) sued Westrock Coffee and six former DFA employees (who left to join Westrock) in the Western District of Missouri, alleging typical DTSA, MTSA, civil conspiracy, breach of contract, breach of duty of loyalty violations.
The former employees are accused of taking confidential business and product information about ready-to-drink coffee beverages to help Westrock release identical products.
Interestingly there was a whistleblower angle as well (another favorite topic of mine!). A Westrock employee notified DFA’s Ethics & Compliance Department that former DFA employees joined Westrock and brought highly confidential materials with them and were recruiting additional DFA employees to move over as well. The whistleblower allegedly was fired in retaliation for reporting his concerns to Westrock management.
The lawsuit is still in early stages, being filed on November 27, 2024, but the case is already gaining momentum with several motions and responses filed.
This coffee-fueled drama will be worth watching in 2025.
