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Circo Craft Co., Inc. vs. AMP-AKZO Corp.,

Unfair Competition; Misappropriation of Trade Secrets

Circo Craft Co., Inc. vs. Amp-Akzo Corp.,
Superior Court for the County of San Diego, Northern District; Case No. N62060

Counsel for Defendants: Small, Larkin & Kiddé
Expert for Defendants: Marc S. Margulis, C.F.A., A.S.A., M.B.A.

Circo Craft is Canada’s largest manufacturer of printed circuit boards. AMP-AKZO is a joint venture of two large, multinational firms, Amp, Inc. and Akzo N.V., formed to manufacture and sell printed circuit boards. Plaintiff alleged that AMP-AKZO deliberately solicited and hired four senior marketing and sales managers from Circo Craft in violation of their employment contracts and contended that each of the four misused Circo Craft’s confidential information and trade secrets in a conspiracy with AMP-AKZO to destroy Circo Craft by soliciting and retaining customers who had entered, or would have otherwise entered, into contracts with Circo Craft.

Plaintiff’s expert prepared an analysis of lost profits and unjust enrichment. Mr. Margulis performed an independent analysis of economic damages sustained by Plaintiff and of unjust enrichment to Defendant under a presumption of liability. Nothing came to his attention that could substantiate Plaintiff’s claim of damages or unjust enrichment as a direct consequence of the departure or subsequent activities of the four individuals. He, furthermore, testified that Plaintiff’s expert completely failed to established a causal link between any action of the Defendants and the subsequent financial performance of Circo Craft and that his analysis was speculative, contradictory, replete with errors and illogic, and without foundation in fact.

The parties settled the matter for less than one-fifth of the amount claimed by Plaintiff’s expert