SmartStream Technologies accuses ex-CEO Chambadal of destruction of evidence

Maria Nikolova

Mr Chambadal gave away a hard drive subject to an Injunction Order issued by the Court – this is used by SmartStream Technologies to accuse him of evidence destruction.

The court battle between provider of software and managed services SmartStream Technologies, Inc. and its former CEO Philippe Chambadal over trade secrets, confidential information and compensation payments continues. As FinanceFeeds reported earlier this month, SmartStream Technologies claims that Mr Chambadal has violated an Injunction Order by refusing to provide the information and devices, as directed by Judge Vernon S. Broderick of the New York Southern District Court.

Today, the company sent a letter to the Judge assigned to the case, insisting that the Defendant continues to violate the Injunction Order. The letter says that Mr Chambadal gave away a hard drive subject to the Injunction Order, and it therefore would not be available for Computer Forensics Practice (CFP) inspection. Discarding this hard drive, according to SmartStream’s counsel, is a violation of the Injunction Order and constitutes destruction of evidence.

On October 9, 2017, Mr Chambadal turned over his personal computer, email account information and Shutterfly account information to CFP, but SmartStream claims he still is in contempt of the Injunction Order because: (1) he has not turned over to CFP the personal hard drive; (2) the inspection and deletion of any SmartStream documents from Chambadal’s computer, hard drive and email is not complete; and (3) Mr Chambadal turned over the computer and email information six weeks late.

As a result, SmartStream says it plans to seek an order of contempt and sanctions against Mr Chambadal.

SmartStream alleges that Mr Chambadal who was provided with a 90 days’ notice of termination of his contract with SmartStream on January 5, 2017, retained corporate property and access to confidential information after the notice was issued.

Mr Chambadal has issued a counterclaim, claiming that the company has prevented him from exercising options worth $25 million. SmartStream’s former CEO alleges that he satisfied all conditions precedent to exercise his option to acquire his awards.

The case, captioned Smartstream Technologies, Inc. v. Chambadal (1:17-cv-02459), continues at the New York Southern District Court.

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