ADP sues Benefitfocus CEO to protect trade secrets
ADP seeks to block its former chief strategy officer, Matthew Levin, from working for Benefitfocus or any other competitor for a year.
Trade secrets in the benefits technology space? Indeed, as the demand for new tools and services in the benefits administration and HRIS space grows, the competition is heating up, and the market leaders are keen to keep sensitive information close to the vest.
Last week, benefit software company Benefitfocus announced the appointment of Matthew Levin as its new CEO, a move that Levin’s former employer, ADP, is not particularly happy with. ADP is suing to keep Levin from assuming the role.
Related: Optum sues to keep trade secrets from Amazon & Co.
The lawsuit, filed in federal court in Newark, N.J., alleges that Levin, as chief strategy officers for ADP, knew details about ADP’s business plans, sales and potential products and would use that information to harm his former employer. Benefitfocus said ADP’s claims are without merit.
“The Company believes the claims made in the ADP Complaints are without merit and Mr. Levin intends to vigorously defend himself against these actions and begin his employment with the Company as planned on May 10, 2021,” the company wrote in response.
Levin was ADP’s chief strategy officer from 2018 through April 2021. ADP’s lawsuit alleges that Benefitfocus is a direct competitor and that it will “benefit from Levin’s knowledge of ADP’s proprietary Information that Levin will inevitably use at Benefitfocus in his role as CEO.”
ADP seeks to block Levin from assuming his new role, and in fact working for any of its competitors for at least a year. Levin, who replaces Stephen Swad, brings more than 15 years’ experience in benefits administration, health insurance and health-care technology industries, the company said. He previously worked at Hewitt Associates and Aon.
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