- DIRTT Environmental Solutions (DRT) has expanded litigation against founders Mogens Smed and Barrie Loberg and their company, Falkbuilt
- The company alleges that Falkbuilt unlawfully used DIRTT’s confidential information in the U.S.
- The company is also pursuing trade secret misappropriation claims against Falkbuilt’s Salt Lake City branch
- In addition, DIRTT has opened a patent infringement claim against Falkbuilt and is seeking an order to compel Smed and Loberg to attend depositions
- DIRTT uses proprietary 3D software to design, manufacture and install fully customized interior environments
- DIRTT Environmental Solutions (DRT) closed up 3.7 per cent trading at $5.05 per share
DIRTT Environmental Solutions (DRT) has expanded litigation against founders Mogens Smed and Barrie Loberg and their company, Falkbuilt.
New lawsuit in Texas
Today, DIRTT’s U.S. operating subsidiary filed a federal lawsuit in the U.S. District Court for the Northern District of Texas against Falkbuilt. The lawsuit alleges that Falkbuilt unlawfully used DIRTT’s confidential information in the U.S. and intentionally caused confusion in an attempt to steal customers, opportunities and business intelligence.
Continuing Utah litigation
DIRTT continues to pursue its trade secret misappropriation claims against Falk Mountain States, an entity purportedly operating as Falkbuilt’s Salt Lake City branch, and several individuals affiliated with the branch in the U.S. District Court for the District of Utah. The company is reviewing discovery and intends to conduct depositions in the near future.
DIRTT seeks order compelling founders to attend depositions, increases claim to C$25 million
In Canada, DIRTT continues to pursue its claims against Falkbuilt, Smed, Loberg and several other former DIRTT employees in a lawsuit filed on May 9, 2019 in the Court of Queen’s Bench of Alberta.
The suit alleges breaches of restrictive covenants; fiduciary duties; duties of loyalty, fidelity and confidentiality; conspiracy; and the misappropriation of DIRTT’s confidential information.
The company recently filed an application seeking a court order compelling numerous defendants, including Smed and Loberg, to attend depositions.
It is also seeking leave to file an amended claim increasing its damages to $25 million, which it believes is reflective of Falkbuilt’s revenues to date.
U.S. patent case continues
DIRTT has filed an action for federal patent infringement in the U.S. District Court for the Northern District of Illinois against Falkbuilt. The patent lawsuit alleges that Falkbuilt’s EchoDome software infringes certain of DIRTT’s patents relating to its proprietary ICE software.
Kevin O’Meara, DIRTT’s CEO, stated,
“Our primary focus is the successful execution of our strategic plan and capturing the benefits of improving construction market conditions, however we also remain steadfast in our commitment to vigorously defend the value of our business, our brand and the interests of our employees, clients, distribution partners, suppliers and shareholders. We are disappointed that the actions of Falkbuilt and its founders necessitated any of this litigation, but we are determined to pursue these actions to the fullest extent of the law.”
DIRTT uses proprietary 3D software to design, manufacture and install fully customized interior environments.
DIRTT Environmental Solutions (DRT) closed up 3.7 per cent trading at $5.05 per share.
