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TORT – BREAKING CONFIDENTIALITY – COURT CRACKS DOWN ON INSIDER LEAKS AND CORPORATE CONSPIRACY

Summary and Facts

Gotham Solutions Sdn Bhd, a provider of security technology, alleged that two former employees, Arthur Fleck and Harley Quinn, unlawfully disclosed confidential information to a competitor, Wayne Enterprises Ltd, a well-known international firm. Gotham claimed this disclosure breached employment contracts, fiduciary duties, and amounted to a conspiracy to harm its business interests. The information disclosed reportedly included Gotham’s strategic plans, pricing models, and key client data.

Legal Issues

  • Whether the disclosed information was confidential and belonged to Gotham Solutions?
  • Whether the defendants engaged in a conspiracy to damage Gotham Solutions’ business interests?
  • Whether the former employees breached their fiduciary duties and employment contracts?

Court Findings

  • The court found that the information shared by Arthur Fleck and Harley Quinn with Wayne Enterprises Ltd was indeed confidential. Evidence showed that sensitive business details were shared without Gotham’s consent. The defendants’ claim that the information was public was dismissed for lack of supporting proof.
  • The court concluded that the defendants conspired to harm Gotham’s business by providing confidential information, which enabled Wayne Enterprises to win contracts previously held by Gotham Solutions, including major deals with Arkham City and Bludhaven Corp.
  • Both Arthur Fleck and Harley Quinn were found to have breached their employment contracts and fiduciary obligations by disclosing proprietary information to a direct competitor.

Practical Implications

This case emphasises the importance of clear confidentiality clauses in employment contracts and the severe consequences of breaching them. Malaysian businesses should ensure that employees understand these obligations, as unauthorized disclosures can lead to substantial legal and financial repercussions. Additionally, competitors who knowingly benefit from such information may also be held accountable. This decision reinforces the court’s commitment to protecting competitive integrity and business interests.

Reference Cases

  • Flowbird Malaysia Sdn Bhd v Alain Taher Osterlind & Ors [2024] 11 MLJ 235
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