The post-acute care firm CareCentrix filed a grievance in U.S. district courtroom towards Marcus Lanznar and Signify Well being, accusing Lanznar of company espionage and theft of confidential data.
“CareCentrix entrusted Lanznar with its highest ranges of confidential data, methods, and commerce secrets and techniques,” learn a redacted model of the grievance filed in a Delaware district courtroom on Monday.
“As Signify ready to go public, it combatted CareCentrix’s superiority by launching a scheme with Lanznar to make use of Lanznar as a spy inside CareCentrix,” the grievance alleged.
“As a matter of coverage, we don’t touch upon pending lawsuits or authorized proceedings,” mentioned a Signify consultant in response to requests for remark. “Nonetheless, we dispute the claims asserted by CareCentrix and intend to vigorously defend the lawsuit.”
Lanznar didn’t reply to requests for remark.
WHY IT MATTERS
CareCentrix makes use of analytics to find out the suitable web site for post-acute care in addition to offering assist and coordination for sufferers and households all through care transitions. In the meantime, Signify’s platform combines know-how, analytics and networks to energy and create value-based fee applications.
“CareCentrix and Signify each compete in the advantages administration market, using know-how, analytics, enterprise methods, experience and community presence to permit payers and suppliers to manage prices,” based on the grievance.
As outlined within the lawsuit, Lanznar labored for CareCentrix between March 2012 and November 2020. On the time of his resignation in November 2020, Lanznar served as CareCentrix’s basic supervisor, vice chairman of product – a place that, CareCentrix says, gave him entry to proprietary and commerce secret data.
“Because the Product GM, Lanznar not solely had information of CareCentrix’s present Merchandise, but in addition its future plans to boost these Merchandise and the analytical knowledge used to develop and measure these enhancements,” the grievance alleges.
“Lanznar additionally helped CareCentrix decide what new Merchandise that CareCentrix ought to deliver to market. On this approach, Lanznar’s work had a big affect on CareCentrix’s operations on a nationwide scale.”
CareCentrix additionally claims that Lanznar signed a non-compete covenant agreeing to not work for any of its rivals for 9 months after his termination of employment. It alleges that he knew Signify was a competitor.
CareCentrix alleges that when Lanznar gave his resignation discover in October 2020, he advised CareCentrix he was not becoming a member of a competitor. Nonetheless, he started working for Signify in November. The dates on Lanznar’s LinkedIn web page are in keeping with this timeline.
However based on the grievance, Lanznar performed interviews in July 2020 with most of Signify’s high executives, and signed a proposal letter with Signify on August 4.
“By mid-August 2020, whereas nonetheless employed at CareCentrix, Lanznar was taking part in strategic planning calls with Signify executives and planning to attend a ‘main technique session’ at a Signify govt workforce offsite assembly,” the courtroom paperwork say. All through September, Lanznar and Signify Chief Product Officer Boumenot scheduled “biweekly” check-ins, based on CareCentrix.
Additional, CareCentrix alleges that when it reviewed Lanznar’s work emails, it discovered numerous situations of him forwarding proprietary CareCentrix data to his private e-mail earlier than leaving the corporate.
“By October 2020, Lanznar’s spying was all-encompassing as he was indiscriminately passing data to Signify that he acquired from colleagues at CareCentrix,” reads the lawsuit.
CareCentrix claims that Signify was conscious of Lanznar’s contractual obligations to CareCentrix and continued to retain Lanznar as an worker.
“Throughout his surreptitious twin employment, Lanznar funneled confidential CareCentrix data and commerce secrets and techniques to Signify (together with data associated to every of CareCentrix’s companies, together with Medicare and Medicaid),” the grievance alleges. Amongst different requests, CareCentrix is asking the courtroom to challenge an injunction stopping Lanznar and Signify from utilizing its commerce secrets and techniques and to award it damages and attorneys’ charges.
A supply near the case advised Healthcare IT Information that it will be important for courts to deal with a majority of these circumstances to make sure that worker mobility and enterprise competitors are practiced legally.
THE LARGER TREND
Quite a few high-profile lawsuits have been filed by main digital well being firms over the previous yr.
In October, the telehealth firm Teladoc filed go well with towards its competitor Amwell over alleged patent infringement.
That very same month, the digital well being data firm Allscripts filed a trademark go well with towards CarePortMD.
ON THE RECORD
“Signify’s and Lanznar’s scheme is exactly the kind of conduct that the regulation and Lanznar’s a number of restrictive covenants have been designed to stop,” reads the grievance. “Lanznar refuses to honor his authorized and contractual obligations and Signify insists on persevering with to make use of Lanznar regardless of full information of, and participation in, his wrongdoing.”