Intellectual Property Law Knowledge Center

PNC Sues Former Executive and Morgan Stanley Over Theft of Trade Secrets

March 20th, 2014

By John D. Simmons, Esq.

On March 14, PNC Financial Services Group filed suit in the Western District of Pennsylvania against one of its former executives and Morgan Stanley Inc. over allegations of the theft of trade secrets. PNC alleges that Eileen Daly, a former senior vice president at PNC, along with three other PNC employees, obtained confidential customer information during their employment that they have since used to draw customers to their new positions at Morgan Stanley, in violation of Daly’s employment agreement.

PNC claims that just prior to her resignation, Daly attempted to download confidential customer information from PNC’s databases, but was halted by internal security measures. She was then allegedly spotted using her cellular phone to take photographs of her computer screen and it is believed that she took approximately ten boxes of customer files from her office. Immediately after starting her new position at Morgan Stanley, PNC alleges, Daly and other Morgan Stanley employees began utilizing PNC’s confidential information to contact customers and transfer nearly $250 million in assets from PNC.

PNC also asserts that Daly and Morgan Stanley have used the confidential information to make defamatory statements to PNC customers in an effort to obtain their business. PNC has further alleged breach of fiduciary duty and common law duties, breach of contract, tortious interference with contractual relations, conversion of corporate assets, unfair competition, and civil conspiracy.

PNC is represented by Buchanan Ingersoll & Rooney PC. The case, PNC Financial Services Group Inc. et al. v. Daly et al., is filed under case number 2:14-cv-00335.

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