Los Angeles, CA – [Date] — Axos Bank has secured a significant $40 million victory in a trade secrets lawsuit against California-based competitor Nano Banc and several former employees, following a federal court judgment confirming liability for misappropriation of proprietary information and related claims.
U.S. District Judge Jesus G. Bernal ruled on Thursday that Nano Banc must pay $14 million in damages to Axos Bank. Additionally, a former Nano Banc vice president was ordered to pay $10 million, a Nano Banc co-founder $14 million, and another former employee $2 million, all stemming from a jury verdict issued on May 7.
The verdict upheld allegations that Nano Banc and its executives wrongfully used Axos’s trade secrets—including computer code, marketing plans, and client information—to build Nano Banc’s business, causing significant harm to Axos. The lawsuit, filed in 2019, detailed a scheme targeting Axos’s specialty deposits division and its vice president, Robert Hasler, whose clients were allegedly poached prior to his departure from Axos.
“Axos Bank is committed to protecting its intellectual property and client relationships,” said [Axos spokesperson/representative]. “This judgment reinforces the importance of integrity and fair competition in the banking industry.”
Nano Banc, formed in 2018 through a merger of Nano Financial and the Commerce Bank of Temecula Valley, was also previously involved in related legal disputes with other California banks, including Citizens Business Bank.
The case, Axos Bank v. Nano Banc et al. (No. 5:19-cv-02092), was heard in the U.S. District Court for the Central District of California.
Axos Bank is represented by attorneys Zachary T. Timm, Christina N. Goodrich, Connor J. Meggs, and Lauren E. Elvick of K&L Gates LLP. Nano Banc’s legal counsel includes Jonathan D. Yank and Isaac R. Zfaty of Much Shelist P.C.
