PENNSYLVANIA — A Pittsburgh federal jury has awarded $7.25 million to Mallet & Co., a baking chemicals manufacturer, after finding that former business partners and employees misappropriated trade secrets involving proprietary baking release agent formulas. The jury’s decision followed a weeklong trial and includes both compensatory and punitive damages.
The verdict, issued Friday, found that Synova LLC, its parent Bundy Baking Solutions, and former Mallet employees Ada Lacayo and William Bowers unlawfully used confidential formulas to launch a rival business. Jurors awarded $4.25 million in compensatory damages and $3 million in punitive damages in the Mallet trade secrets lawsuit verdict.
Trade Secrets and Fiduciary Breaches
Mallet accused Bundy and Synova of building their new release agents business by poaching Mallet employees and copying confidential baking release agent formulas — lubricants used to keep commercial baked goods from sticking to pans. The lawsuit alleged that Lacayo and Bowers violated noncompete and confidentiality agreements, and that the defendants breached fiduciary duties, committed tortious interference, and violated state and federal trade secrets laws.
While the jury found that Lacayo and Bowers had violated their duties, they awarded only $1 each in damages against the two individually. However, the jury also found they would “inevitably disclose” Mallet’s trade secrets simply by continuing their work at Synova until their 2020 departures.
On broader claims, including tortious interference and abetting breaches of contract, the jury awarded $500,000 in compensatory damages and $1 million in punitive damages against Bundy and Synova.
