Commonwealth Achieves Initial Victory in the Enforcement of Its Restrictive Covenants

New York, New York, January 14, 2015 (Newswire.com) - Contact Information:
Commonwealth Foreign Exchange, Inc.
1633 Broadway, 27th Floor
New York, NY 10019
212.822.9954
www.commonwealthfx.com

On December 16, 2014, the Supreme Court of the State of New York granted Commonwealth Foreign Exchange, Inc. (“Commonwealth”) a preliminary injunction enjoining the conduct of two former employees.  This Order followed the Court’s prior decision to grant Commonwealth’s Motion for a Temporary Restraining Order against the same individuals.  Commonwealth alleges in this ongoing litigation that these former employees violated their employment agreements, as well as applicable law, by joining a competitor following their resignation from Commonwealth, misappropriating Commonwealth’s confidential and proprietary documents, and soliciting Commonwealth employees and clients.  The other defendants in this lawsuit include three companies that allegedly had a role in inducing the former employees’ illegal actions resulting in their own unlawful conduct.

Commonwealth is a leading national foreign exchange and international payments company, providing all of its clients with fair, consistent, and competitive exchange rates.  Commonwealth arms its customers with the tools they need to manage their foreign currency risk, and maximize efficiencies in their international payments. It handles transactions for thousands of corporate accounts, ranging from financial institutions and multinational corporations to small businesses and sole proprietorships.  Commonwealth has attained great success in a competitive industry, by devoting considerable time and resources to understand the broad needs of its client base and providing transparency in the foreign exchange market.  Their deliberate and considerate business practices have led to numerous satisfied customers and in turn a plethora of referrals. 

Due to the critical importance of its proprietary and confidential information, Commonwealth goes to great lengths to protect these materials.  The two former employees that are currently entangled in litigation with Commonwealth executed employment agreements upon joining the company that contained restrictive covenants protecting Commonwealth’s confidential information and goodwill.  Recognizing the irreparable harm to Commonwealth that would ensue if these former employees were allowed to work for a direct competitor in the foreign currency exchange industry, the Supreme Court of New York ruled that such behavior is preliminarily enjoined.  Although this litigation is in the beginning stages, Commonwealth has every intention of ensuring the protection of its confidential and proprietary information and the enforcement of its employment agreements, while pursuing all relief it is entitled to.  Commonwealth is represented by Michael E. Grenert, Andrea M. Paparella, LaKeisha M.A. Caton and Erin E. Lynch of Liddle & Robinson, L.L.P. in these efforts.