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Cyber Incident Victim: Secure Data Technologies, Inc.

Date:

Sep 2020

Location:

United States of America

Summary

Secure Data Technologies, Inc. sued a former senior engineer and her competing company for allegedly hacking its email system to access confidential communications among executives, misappropriating proprietary client information, and violating a non-compete agreement. The employee purportedly created unauthorized access to leadership mailboxes, leading to her termination, then formed a rival firm that solicited the company’s clients—including one where her involvement coincided with lost revenue. The lawsuit seeks injunctions against further use of trade secrets and monetary damages for breaches involving client solicitation, confidential data misuse, and competitive interference.

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Description

Secure Data Technologies, Inc., an Illinois-based infrastructure technology company, filed a lawsuit on September 11, 2020, in the Eastern District of Missouri against former employee Jamie Stephanie Guilford and her company, Guilford Technologies, LLC. The complaint alleged Guilford, who served as a Senior Consulting System Engineer from July 9, 2018, to February 23, 2020, breached her employment contract and committed unauthorized computer access. According to the filing, Guilford hacked into Secure Data’s email system in February 2020, gaining unapproved access to the mailboxes of CEO Dana Steffey, CFO Derek Herbison, employee Simonne Meszaros, and another staff member. The intrusion triggered a security alert that prompted an internal investigation, with activity logs confirming Guilford’s actions. Secure Data terminated Guilford’s employment following the discovery, citing an alleged admission by Guilford that she "illegally hacked" confidential emails, which was attached as an exhibit to the lawsuit.

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The incident had significant operational and financial repercussions. After her termination, Guilford established Guilford Technologies, LLC, described as a direct competitor providing similar infrastructure technology services. In August 2020, Secure Data detected unauthorized modifications to client Tacony Corporation’s infrastructure records, including additions referencing Guilford. This coincided with a deterioration in Secure Data’s relationship with Tacony and a loss of expected revenue. The lawsuit accused Guilford of violating her non-compete agreement by misappropriating proprietary client information, soliciting Secure Data clients, and leveraging confidential data to benefit her competing venture. Secure Data sought preliminary and permanent injunctions to prevent further disclosure of trade secrets, along with monetary damages for alleged violations of Missouri and Illinois business tort and computer fraud statutes. The company retained Avigad Law, LLC as legal counsel, pursuing seven claims for relief based on the documented breach and subsequent competitive harm.

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