S.D. Ga.

Plaintiff Says Trade Secrets Weren’t Part of Bankruptcy Purchase

HE, Inc. v. Avadim Holdings, Inc. et al., Civil Action No. 1:22-cv-00141-JRH-BKE (S.D. Ga., Nov. 4, 2022)

This dispute stems from a recent bankruptcy proceeding. According to a lawsuit filed in the Southern District, Avadim Holdings purchased a number of assets from HE, Inc. in bankruptcy, but “purposefully failed to purchase [its] intellectual property rights.”

Despite this, the lawsuit alleges that Avadim has used and continues to use HT’s intellectual property and trade secrets in violation of an NDA that was entered during the bankruptcy negotiations. HE is, therefore, asking the court for a preliminary injunction to prohibit Avadim Holdings from further use of their proprietary information and trade secrets.  HE is also seeking a permanent injunction and damages for this alleged use.

This case has been assigned to Judge Randal Hall.  Avadim has asked for an extension to January 12, 2023 to respond to the complaint and motion for preliminary injunction.

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