Texas-based supplier Ennis, Inc. (asi/52493) says that one of its subsidiaries, Crabar/GBF, has won a $5 million judgement in a jury-determined case in federal court in Nebraska against Wright Printing Company, its owner Mark Wright and CEO Mardra Sikora.

Following a two-week trial, the jury this month decided to award Crabar more than $3.75 million in actual damages. Wright and Sikora, along with two alleged accomplice employees, were assessed an additional $1.25 million in punitive damages for what the jury determined to be misappropriation of trade secrets from Crabar/GBF, Ennis said.

“The jury's verdict that defendants willfully and maliciously misappropriated our trade secret information affirms the importance of Ennis’ property rights,” said Ennis CEO Keith Walters.

According to Ennis, Crabar/GBF purchased Wright Printing Company’s Folder Express and Progress Publications folder business for $15 million in 2013.

However, alleged underhanded activities ensued – namely, that Wright Printing Company, Wright and Sikora used confidential customer lists, customer sales data and specifications regarding what was Crabar’s Folder Express (asi/54896) and Progress Publications custom line to launch competing folder brands Pocket Folders Fast and Bandfolder Press, according to Ennis.

“Ultimately, Wright Printing Company duplicated all of the Folder Express and Progress Publications top-selling products,” Ennis asserted. “They then launched a direct marketing campaign targeted at the top customers of Folder Express and Progress Publications that Mark Wright and Mardra Sikora culled from the confidential customer data that Wright Printing Company had sold to Crabar with a covenant never to use in the future.”

Ennis Inc. said a former Folders Express employee took an external hard drive when she left Folders Express to go back to work for Wright Printing Company and its startup folder businesses in 2016. According to Ennis, efforts to duplicate the Folder Express and Progress Publications product lines were assisted by the theft of detailed product specifications, manufacturing references and files, as well as folder templates. 

“Ennis filed this lawsuit because it owes its shareholders a duty to protect their investment and to recapture the substantial losses caused by defendants’ misappropriation of confidential information to gain an unfair advantage in the market,” said Walters. “Ennis is satisfied that the jury’s verdict is a just outcome for it and its shareholders.”