advanced aerofoil complaint

J\$OT,[\RT[RrN THE UNITED STATES DISTRICT COURT ^. e rr, PFoRrrrE sourHERN:lrTT'eIWry b u oADVANCED AEROFOIL TECHNOLOGIES,AG, a Swiss Corporation,ADVANCED AEROFOILTECIINOLOGIES, INC. a DelawareCorporation, and ADVANCED AEROFOILTECHNOLOGIES, GmbH, a GermanCorporation,

Plaintiffs,

v.

TIIOMAS TODARO, AIITHONY CIIALDE&MARK TARBY, as lndividuals,ADVAFICED ENGINEERTNG TECHNOLOGIES,lNC., a New Jersey Corporation,FLC FLOWCASTINGS, GmbE, a GermanCorporation, and PETER KONRAD,HERVE TLUTTO, DANIEL ABBASI,FABIAN KORB, CHARLES BYRI)and BERND LEONHARDT as individuals,

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Defendants-

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Plaintiffs, Advanced Aerofoil Tecbnologies, AG (hereinafter cerd{T AG'), Advanced

Aerofoil Technologiw, Inc (hereinafter "AAT, Inc.') and Advanced Aerofoil Tecbnologies,

GnbH (hereinafter *AAT Germany') (or collectively'?laintiffs'), by their attorneys, Cronin &

Co., Ltd., and complaining against Defendants, Thomas Todaro, Anthony Chalder, MatkTarby,

Advanced Engineering Technologies, FLC Flowcastings, GmbH, Charles Byr4 Daniel Abbasi,

t Pursuant to a terminafion agreement with some of the Defendants, Plaintiffs are fling aclaim for arbitration with the Arnerican Arbitration Association in New York. In this matter,Plaintiffs seek injunctive relief against all Defendants and, additionally, damages againstDefendants FLC Flowcastings, GmbH, Abbasi, Konrad, Korb, Flutto and Leonhardt.

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Case 1:11-cv-09505-ALC-DCF Document 1 Filed 12/23/11 Page 1 of 32

Herve Flutto, Peter Konrad, Fabian Korb and Bernd Leonhardt (hereinalter, collectively

"D efe,ndants"), state:

NATIIRE OF THE ACJION

1. This case is about corporate theft and self-dealing on a grand scale, c,ommitted by

FLC Flowcastinp, GmbH (hereinafter "FlowcastitrS"), its corporate executives and certain

errployees. Plaintiffs are developers of precision investmelrt castings for the power generation

and transportation industries, and Flowcastings is a corporate competitor formed by Plaintiffs'

forrner employees using Plainfiffs' technologies and resources.

2. Plaintiffs bring this action for darnages and equitable relief against Defendants.

As set forth in the factual recitation below, Flowcastings, a direct competitor of Plaintiffs, has

violated federal and state law by misappropriating sensitive trade secrets and other confidential

and proprietary inforrration of the Plaintiffs, and putting zuch wrongfully acquired information

to improper use. Defendants Byrd, Flutto and Todaro, all forrner executives of Plaintiffs and

now founding members of Flowcastings, gained unauthorized access to Plaintiffs' computer

syste,ms, misappropriated Plaintiffs' tade secrets and confide,lrtial business information, and used

such information to start Flowcastings.

3. Plaintif;ls uncovered Defendants' schme on October 13, 2}ll, when R. Seth

Armstrong, acting Director of AAT, Lro., was inadvertently copied on an ecnail from a company

supplier who was responding to an October 10, 2011 email from AAT AG's former Chief

Technical Officer, Herve Flutto (hereinafter'Tlutto"). [n Flutto's October l0,2}l1 email to the

supplier he enquired about supplying alloy for a new operation he was starting trp: Flowcastings-

Flutto attached the PowerPoint Prese,ntation to his email announcing Flowcasting's offered

Case 1:11-cv-09505-ALC-DCF Document 1 Filed 12/23/11 Page 2 of 32

products, its technology and its "robust management te&m," all of whom are former mernbers of

Plaintiffs' senior management team.

4. Through this Verified Complaint, Plaintiffs seek to stop Defendants' illegal

intuusions and theft, to prevent Defendants from using the materials and information they have

illegally acquired to compete with Plaintiffs, and to recover damages and attomeys' fees.

TIIE PARTIES

5. PlaintiffAAT AC is'a Swiss Corporation with its principal place of business in

Riedsrasse 7, CH-6330 Cham, Switzerland. AAT AG is the parent corporation of AAT, Inc.

and AAT GmbH. AAT AG is a manufacttrer of precision invesfinent castinp for the power

generation irnd transportation indushies.

6. PlaintiffAAT, Inc. is a Delaware Corporation with its principal place of business

in Chicago, Itlinois. AAT, Inc. is a sister corporation of AAT, GmbH and was incorporated in

the United States to expand aud build manufachring facilities in the United States and to serve

customsrs in the United States and Canada

7. PlaintiffAAT CrmbH is a German Corporation with its principal place ofbusiness

located at Gottlieb-Keim-Str. 65,95448 Bayrzuth, Germany. AAT GmbH is the Ewopean

manufacturing facility for AAT AG's precision investment castings.

8. Defendant Thomas Todaro is domiciled at 130 Gunn Roa4 Branchville, New

Jersey 07826-4167. Todaro is the former Technical Director of AAT Germany and currently

serves as the Chief Technical Olficer of Flowcastings. While employed with AAT Gennany,

Todaro was an employee of its American sister company, AAf, Inc. Plaintiffs are informed and

believe, and based thereon allege that, Todaro is an owner, me,nber, investor, shareholder or

otherwise affiliated with Flowcastings.

Case 1:11-cv-09505-ALC-DCF Document 1 Filed 12/23/11 Page 3 of 32

9. Defendant Advanced Engineering Technologies is a New Jersey Corporation with

its principal place of business in Branchville, New Jersey. Plaintiffs are informed and believe,

and based thereon allege that, Advanced Engineering Technologies was incorporated and is

currently owned by Defendant Thomas Todaro.

10. Defendant Anthony Chalder is domiciled at 32 North Steet, Milford, New

Hampshire 03055-4019. Chalder is a former employee of AAT, Inc. and upon inforrration and

belief is cunently e.nrployed by Flowcastings.

11. Defendant Mark Tarby is domiciled at 43 Livingston, Avenue, Edison, New

Jersey 08820-2340. Tarby is a former ernployee of AAT, Inc. and upon information and belief is

currently eurployed by Flowcastings.

12. FLC Flowcastings, GmbH, is a German Corporation. Flowcastings maintains a

manufacturing facility located at Wiilfelstr. 7,95444 Bayreuth, Germany. Plaintiffs are informed

and believe, md based thereon allege, that Byrd, Abbasi, Todaro and Flutlo are ownen'

members, investors, shareholders or otherwise affiliated with Flowcastings. Flowca.*ings is in

the business of manufacturing precision investrnent castings for the power generation and

tansportation industies in direct competition with AAT.

13. Defendant Charles Byrd Wdlfelstr. 7, 954M Bayreuth, Germany. Byrd is the

former Chief Executive Officer of AAT Germany and cunently serves as the Chief Executive

Officer of Flowcastings. Plaintiffs are informed and believe, and based thereon allege, that Byrd

is an owner, merrber, investor, shareholder or otherwise affiliatd with Flowcastinp.

14. Defendant Daniel R. Abbasi is domiciled at 16 Griffith Rd., Riverside,

Connecticut, 06878. Abbasi cune,lrtly seryes as President of Flowcastings. Plaintiffs are

Case 1:11-cv-09505-ALC-DCF Document 1 Filed 12/23/11 Page 4 of 32

informed and beliwe, and based thereon alleg, that Abbasi is an owner, manber, investor,

shareholder or otherwise affiliated with Flowcastings.

15. Defe,lrdant Herve Flutto is domiciled at Panoramaweg 15, 5070 Frick,

Swiuerland. Flutto is the forrner Chief Financial Officer of AAT Germany and currently serves

as Chief Financial Officer of Flowcastings. Plaintiffs are informed and believe, and based

thereon allege, that Flutto is an owner, membr, investor, shareholder or otherwise affiliated with

Flowcastings.

16. Defendant Peter Konrad is domiciled at Zechenring30,91257 Pegnitz, Germany.

Konrad is the former Engineering Manager of AAT Group and currently sewes as the Product

Engineer Managr of Flowcastings. Plaintiffare informd and believe, and based thereon allege

that, Komad is an ownetr, member, investoE shareholder or otherurise affiliated with

Flowcastings.

17. Defendant Fabian Korb is domiciled at Bertastr. 36, 9M80 Niirnbeg, Germany.

I(orb is a former Engineer at AAT Group and currently serves as an Engineer of Flowcastings.

18. Defendant Bernd Leonhardt is domiciled at l,oren-Allec 9, 8610 Uster,

Switzerland. t eonhardt is a former Program Manager at AAT Group and crnrently serves as

Program Manager of Flowcastings.

JT}RISDICTION AI\ID VENUE

19. This Court has jruisdiction over the zubject matter and parties to this action

pursuant to 28 U.S.C. $ 1332(a). This Complaint alleges violations of the Computer Fraud and

Abuse Act, 18 U.S.C. $ 1030, and thus presents a federal question, over which this Court has

jwisdiction punsuant to 28 U.S.C. $ 1331.

Case 1:11-cv-09505-ALC-DCF Document 1 Filed 12/23/11 Page 5 of 32

20. This Court has personal jurisdiction over the Defendants because the parties

consented to this jurisdiction in the termination agreernent signed by parties. Under its terms, theparties are required to ptrsue injunctive relief in this jurisdiction.

21. This Court also has supplemental jurisdiction to adjudicate Plaintiffs state lawclaims pursuant to 28 U.S.C. $ 1367.

22. Venue is proper in this Distict purzuant to 28 U.S.C. 1391(b-c) and 1400O)because Defendants are subject to personal jurisdiction in this Distict and do business in t