
The United States Court of Appeals for the Fifth Circuit in New Orleans recently vacated an order from a Texas-based district court denying a preliminary injunction to Direct Biologics, LLC (“Direct Biologics”). The court ruled that Direct Biologics had presented sufficient evidence that its trade secret information in the hands of its former employee and business competitor, Vivex Biologics, Inc. (“Vivex”), could constitute irreparable harm if Direct Biologics could present evidence Vivex and the former employee would likely use that information during the pendency of the lawsuit. The court’s opinion offers guidance for employers facing confidential data breaches and hiring employees from competing firms.