Standard Register Co. has filed a lawsuit against two former employees who started a similar company in Boston using Standard Register’s trade secrets and customer contacts, according to documents filed Monday in federal bankruptcy court.
The lawsuit filed in U.S. Bankruptcy Court for the District of Delaware seeks action against former Standard Register sales employees Craig Stockmal and Lynn Smith, alleging breach of contract and misappropriation of trade secrets, among other counts.
Standard Register claims the loss of key customers could threaten its sale to Taylor Corp., the Minnesota-based company that plans to acquire the assets of the century-old Dayton printing and marketing company.
Standard Register’s lawsuit alleges a “deliberate scheme” by Stockmal and Smith to usurp trade secrets, confidential and proprietary information, and customer contacts obtained while employed at Standard Register to divert customers to their new firm, Boston-based Focused Impressions.
“Stockmal and Smith are now leading Focused Impressions, having secretly served as its founders, officers, executives, and operatives while still employees at Standard Register, and using this misappropriated information to attempt to steal key Standard Register customers,” documents said.
Both Stockmal and Smith were employed by Standard Register since the 1980s and based at the company’s Boston office. Smith resigned from Standard Register on April 3; Stockmal left the company June 19, documents said.
Standard Register claims its former employees actions will cause “irreparable harm” to the company’s business and long-term prospects
The lawsuit asks the court to enforce Stockmal and Smith’s employment agreements, prevent both from disclosing Standard Register’s trade secrets or contacting its customers or potential customers, and award actual and punitive damages, including attorneys’ fees.
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