Thursday, July 16, 2009

UBS Charges 3 Ex-Employees With Code Theft


SecuritiesIndustry
Goldman Sachs is not the only Wall Street firm taking an ex-employee to court with the charge of theft of trade secrets in the form of valuable, proprietary trading code.

Swiss bank UBS AG confirmed Monday that it filed papers in March charging three ex-employees with “misappropriation of trade secrets.” The “misappropriation” included 25,000 lines of source code used in UBS’s “trade secret algorithmic trading programs,” according to documents submitted with the New York State Supreme Court.

The bank is charging three former employees in the firm’s algorithmic trading group of having “collectively coordinated and planned together” to move to new jobs at New York-based Jefferies & Company while still technically in the employee of UBS, taking with them UBS trade secrets, breaching their employment contracts and fiduciary duties and resulting in unfair competition.

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