Plaintiff, a limited liability company, brought an action against members of the Company’s executive management team and contractors who were distributors of the Company’s products, for, among other matters, breach of contract and breach of fiduciary duty. In this decision, the Court of Chancery considered and granted Plaintiff’s motion for a preliminary injunction. Specifically, the Court found that Plaintiff had shown a reasonable probability of success on its civil conspiracy claim, its fiduciary duty claim, and its claim that defendants breached certain non-solicitation provisions in their contracts with the Company. The Court also found that the Company would suffer irreparable harm if defendants were not enjoined from recruiting the Company’s distributors and that the balance of equities favored Plaintiff. Thus, the Court granted an injunction against defendants for 3 months, enjoining them from disclosing trade secret information and recruiting Company distributors.
