US court orders QualiZeal, ex-Cigniti staff to return IP & refrain from soliciting Cigniti clients


HYDERABAD: In a respite for Hyderabad-based AI & IP-led digital assurance and digital engineering services provider Cigniti Technologies, a US court has issued an interim injunction restraining Hyderabad-based digital engineering services provider QualiZeal as well as some former Cigniti employees, that joined the company, from soliciting business from Cigniti’s clients and return all confidential data, proprietary information and trade secrets belonging to Cigniti.
Cigniti Technologies had filed a lawsuit in the Dallas County District Court in late 2021 against its former employees Pradeep Govindasamy, Kalyana Rao Konda and Doug Hall as well as QualiZeal.
“The court has found supporting evidence that Pradeep, Kalyan, Ravi Sindri, Ashwin Bakshi, Koteswara Rao Bipilli, Ramanathan Ponnusamy, Doug Hall and other individuals who left Cigniti and joined QualiZeal have indulged in breach of contract, breach of fiduciary duty, tortious interference with prospective and existing contracts of Cigniti, for fraud, conspiracy, aiding and abetting,” Cigniti Technologies said in a regulatory filing with the bourses on Thursday.
According to Cigniti, the US court, in its interim injunction, ordered the above-mentioned individuals and others acting in concert to return all confidential data, proprietary information and trade secrets belonging to Cigniti Technologies that may be in their possession.
The court also restrained them from directly or indirectly soliciting or accepting business from any person or entity that was a client of Cigniti’s for the period from October 1, 2020, through November 30, 2021.
The court also ordered them to refrain from directly soliciting or accepting business from any person or entity that was a prospective a client of Cigniti, as known by Cigniti and any of the individual defendants, for the period October 1, 2020, through November 30, 2021, Cigniti added.





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