Company accuses former executive Daniel Moore of taking confidential information to rival ConnectWise
Datto is suing a former executive for allegedly taking company trade secrets with him when he left the company during the summer and months later went to work for a competitor.
The Lowdown: Two days before its high-profile IPO and entrance onto the New York Stock Exchange, Datto, a company that makes cloud-based IT solutions that MSPs can sell to their SMB customers, filed the lawsuit against Daniel Moore in a U.S. District Court in Florida.
The Details: Moore was Datto’s director and head of commercial operations for the EMEA and APAC regions from November 2018 until July this year, when he was laid off. He joined ConnectWise, which makes IT solutions for technology service providers and is not a party in the lawsuit, in September as its vice president of sales operations.
The complaint, filed Oct. 19 and first reported by Bloomberg, claims that Moore accessed hundreds of confidential files on his company-issued laptops and used USB devices to copy proprietary information before returning his computers when his employment at Datto ended. According to the complaint, the files included “among the most valuable and confidential information from Datto’s sales organization,” including data about Datto’s customer base, pricing, sales, and customer targets.
In a statement to ChannelE2E, ConnectWise CEO Jason Magee said that the company is taking the claims made in the lawsuit “very seriously.” ConnectWise has contacted the lawyers representing Datto, and Moore has been placed on paid leave pending a ConnectWise investigation into the allegations.
“After it has concluded its investigation, ConnectWise will make a well-informed and balanced decision as to its next steps, taking into account all of the information ConnectWise’s investigation uncovers,” Magee said.
The Impact: Datto and ConnectWise both offer technology solutions to service providers, including backup, disaster recovery, and remote monitoring and management (RMM) for SMBs. Despite the ongoing competition, Datto last year rebuilt the integration of its RMM with ConnectWise Manage, its professional services automation (PSA) offering, in an effort to ensure it retained an open ecosystem.