ANI Pharmaceuticals Alleges Poaching, Confidentiality Breach

On Wednesday a case was filed in the District of New Jersey by CIPLA USA Inc. against ANI Pharmaceuticals Inc. and Nikhil Lalwani. The case is alleges breach of a a confidentiality agreement by a former management employee as well as poaching of employees.

The complaint explained that Lalwani was employed by CIPLA in a variety of positions and ended his career as CEO of American operations at the pharmaceutical company. After resigning, he was employed by ANI Pharmaceuticals as President and CEO.

At the beginning of his employment, the complaint said, Lalwani signed a confidentiality agreement that had provisions regarding CIPlA’s trade secrets, return of proprietary information, and regarding undermining CIPLA’s business. The agreement also specifically included a provision regarding interference in CIPLA’s relationship with its employees for the first two years after he left employment.

The plaintiff accuses the defendants of using CIPLA’s proprietary information directly as well as for the purposes of luring key employees to resign and seek employment with the defendants.

The plaintiff is suing for breach of contract, misappropriation of trade secrets, tortious interference with a contractual relationship, breach of fiduciary duty and aiding and abetting breach of fiduciary duty, and breach of duty of loyalty and aiding and abetting breach of duty of loyalty. The plaintiff is represented by Hill Wallack LLP and Wiley Rein LLP.