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The U.S District Court in Manhattan has ruled the Citadel Securities’ lawsuit accusing crypto-trading startup Portofino of stealing the firm’s trade secrets can largely proceed. According to a court filing on Oct. 30, the Manhattan District court has agreed to proceed with Citadel’s lawsuit against crypto-trading startup Portofino created the two former Citadel Securities employees who are accused of stealing trade secrets to form the startup. The judge denied in part Portofino’s motion to dismiss the case, but he also did the same to Citadel Securities’ claims that Portofino breached the employment contracts of three Citadel Securities workers it tried to recruit. Previously, Citadel Securities alleged Portofino’s recruitment of the firm’s systematic options trader, Taym Moustapha, violated his employee contract. It also stated the firm was forced to pay “substantially increased compensation” to an unnamed employee to overshadow the offer from Portofino. The judge dismissed Citadel Securities claims regarding Moustapha and two unidentified employees, but gave the firm leave to file an amended complaint to fill in the gaps pointed out by the court during the conference. The court gave Citadel Securities a maximum of 30 days to refile its complaint. Meanwhile, another claim filed through by the firm involving another employee was allowed to proceed. Though, on Oct. 31 the court granted Portofino’s request to dismiss Citadel’s case involving a seed investor. “Because Plaintiffs have not shown that Defendant expected or should have reasonably expected that his investment in Portofino would have consequences in New York,” wrote US District Judge Gregory Woods in the court document. Woods further explained that the court lacked jurisdiction over the seed investor, a French citizen named Jean Canzoneri. The judge also noted that Canzoneri’s alleged investment pre-dated Portofino’s founding and any alleged stealing of trade secrets. Canzoneri argued the case against him should be…

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Filed under: News - @ November 1, 2024 8:24 am