Primula Management, LLC (“Primula”) filed a lawsuit today in the United States District Court for the Southern District of New York alleging that Primrose School Franchising Company LLC and Primrose School Franchising SPE, LLC (collectively, “Primrose”) misappropriated Primula’s proprietary confidential trade secrets.
Primrose operates a network of over 500 franchised early childhood education schools.
Primula, which manages six early childhood education schools, including one in Manhattan, under the Primrose umbrella, invested substantial sums of money to develop a proprietary enrollment management application.
The enrollment management application has added significant value in terms of time saved and revenue opportunities identified at the six schools Primula manages by replacing the use of downloadable reports and the need to manually update spreadsheets to forecast and manage enrollment. Based on the success of the application at his schools, Primula’s founder, Matthew Grossman of Manhattan, approached Primrose about the possibility of making the application available for use at other schools in the Primrose network, which do not have access to the capabilities of the Primula application.
The Complaint alleges that a few months after the start of a pilot program between Primula and Primrose, Primrose wantonly breached the agreed confidentiality provisions of the agreement covering the pilot program by repeatedly revealing Primula’s trade secret confidential information and critical capabilities of the Primula application in multiple communications to the owners and directors of all 500 plus Primrose schools nationwide.
In addition to monetary damages, the Complaint seeks an injunction preventing Primrose from further unlawfully disclosing Primula’s confidential information and trade secrets.
For media inquiries, please contact Christopher J. Clark at clark@csvllp.com and Geoffrey Coll at geoffrey.coll@csvllp.com of Clark Smith Villazor LLP.
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