Click Fraud Protection Jury Verdict for $1.6 Million in Punitive Damages and Monetary Sanctions in Breach of Duty of Loyalty Lawsuit - Tycko & Zavareei LLP
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Jury Verdict for $1.6 Million in Punitive Damages and Monetary Sanctions in Breach of Duty of Loyalty Lawsuit

Outcome: $1.6 Million

Several lawsuits in Los Angeles County Superior Court

TestMasters, a national test preparation company, engaged in extensive legal actions against former employees and their subsequent business venture, Blueprint Test Preparation, LLC, among others. This complex legal dispute encompassed multiple claims and counterclaims involving issues of employee loyalty, defamation, and unfair competition. The sequence of events unfolded through several lawsuits initiated by TestMasters targeting these individuals and their business activities which were perceived as direct competition and a breach of loyalty.
The litigation process featured a series of court actions, prominently including action against a particular former employee, asserting claims for tortious breach of an employee’s duty of loyalty, libel, and interference with prospective economic advantage. TestMasters initiated an action against Blueprint Test Preparation, LLC, and several individuals for claims including tortious breach of the duty of loyalty and slander. Further expanding their legal battle, TestMasters commenced another action solely focused on allegations of defamation and trade libel.
These legal disputes were later consolidated, though one matter was separated into a jury trial. During these proceedings, the court awarded various monetary sanctions in favor of TestMasters, amounting to significant sums against the defendants, on several occasions:

  • $703,410.71 sanctioned on January 24, 2008.
  • $154,952.85 sanctioned on April 10, 2008.
  • $70,325.76 and $738,085.10 sanctioned on September 29, 2008.

These awards highlighted the court’s findings in favor of TestMasters throughout the drawn-out litigation process.

Key Settlement Highlights:

The culmination of these legal battles resulted in a significant triumph for TestMasters, obtaining a jury verdict that included punitive damages and the court-awarded monetary sanctions against Blueprint Test Preparation LLC and associated individuals. These outcomes underscored a resounding victory for TestMasters, emphasizing legal vindication against what was determined as acts of disloyalty and unfair competitive practices by former employees. This result not only provided monetary compensation to TestMasters but also serves as a deterrent for similar conduct by individuals in the competitive business environment of test preparation services.

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