Borgata Casino got a shot in the arm from Lady Justice last Thursday as a federal judge in Nevada ordered a former Borgata casino executive, among others, to return a company-issued mobile phone which contained valuable information on Borgata’s top players and highest rollers.
Aside from instructing the former Borgata exec to return the cell phone, U.S. judge Gloria Navarro also issued a temporary restraining order preventing the two former executives who left Borgata this summer to work for the Ocean Casino Resort from contacting any past, present, or prospective clients of the Borgata Casino. Navarro also ordered the two former Borgata executives not to share trade secrets or confidential information to their new employers.
However, the judge did not order the two executives removed from their jobs at Ocean Casino despite violating unfair competition laws and agreements. In not terminating the two, Navarro reasoned that the plaintiff did not present evidence that proved Ocean knew that the two were using Borgata trade secrets in their current employment.
Last month, Borgata Casino accused Ocean Casino of “poaching” six former executives in what it called an “attempt to cripple “ it by using trade secrets and sensitive information about its top clients. Borgata proceeded to filing a lawsuit after it asserted that the hiring of their former officers violated New Jersey’s unfair competition laws.
Attempt To Cripple Borgata
The case centered on William Callahan and Kelly Ashman Burke, who worked with Borgata’s top clients, and who were recently hired by Ocean Casino. Borgata took exception of Callahan for his failure to return a company-issued cell phone which was said to contain top secret information regarding Borgata’s high-rollers. Borgata claimed that Callahan refused to return the phone even after he had resigned from his post at their casino.
Callahan worked with Borgata’s highest-level customers who spent around $1.5M-$4M per visit. Borgata claimed that these clients were worth a collective $25M per year and Ocean was “crippling” their business using the information that Callahan took from Borgata using his cell phone. The case was filed in Nevada because MGM Resorts International, Borgata’s parent company, is located there.