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Sun Data sues former employees over new firm

Written by Firm | Oct 9, 1998 | News

Atlanta Business Chronicle

October 9, 1998
Evelina Shmukler

Norcross-based Sun Data Inc., which sells computer products and services, has filed suit against a group of former employees, including three former Sun vice presidents.

The employees, who have formed a new company, responded with a countersuit alleging that Sun is interfering with its business, said Richard Robbins, the employees’ attorney. Robbins added that the employees had not made any noncompetition or nonsolicitation agreements with Sun and that Sun’s lawsuit was filed soon after the company had promised to pay its former workers $165,000 in bonuses and commissions.

Sun alleges that the eight employees decided to form their own company while still employees of Sun. In the process, Sun says in the complaint, the employees defrauded Sun, betrayed company agreements and took proprietary information. The defendants deny the allegations.

Sun is asking for $5 million in punitive damages. The case, filed in Fulton County Superior Court in August, is currently in the discovery stage.

According to Sun’s complaint, the eight employees resigned within a few days of each other in mid-July. Sun said in the lawsuit that the new company, a computer reseller, is very similar to a business Sun itself had wanted to start under the leadership of one of the employees who resigned to form the new company.

Sun is also seeking permanent injunctive relief and actual damages of $700,000, plus attorneys’ fees.

Norcross-based Sun Data has almost 350 employees in more than 25 offices nationwide. It generated revenue of $202.9 million last year.