Advanced Micro Devices, Inc. v. Feldstein

951 F. Supp. 2d 212, 36 I.E.R. Cas. (BNA) 1029, 2013 WL 2666746, 2013 U.S. Dist. LEXIS 81206
CourtDistrict Court, D. Massachusetts
DecidedJune 10, 2013
DocketCivil Action No. 13-40007-TSH
StatusPublished
Cited by7 cases

This text of 951 F. Supp. 2d 212 (Advanced Micro Devices, Inc. v. Feldstein) is published on Counsel Stack Legal Research, covering District Court, D. Massachusetts primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Advanced Micro Devices, Inc. v. Feldstein, 951 F. Supp. 2d 212, 36 I.E.R. Cas. (BNA) 1029, 2013 WL 2666746, 2013 U.S. Dist. LEXIS 81206 (D. Mass. 2013).

Opinion

MEMORANDUM AND ORDER ON DEFENDANTS’ MOTIONS TO DISMISS

HILLMAN, District Judge.

This is an action for misappropriation of trade secrets, unfair competition, breach of contract, violation of the Computer Fraud and Abuse Act (“CFAA”), and conspiracy.1 Plaintiff Advanced Micro Devices, Inc. (“Plaintiff’ or “AMD”) has already sought and received a Preliminary Injunction (“PI”) against four defendants, and a Temporary Restraining Order (“TRO”) against the fifth defendant.2 The four enjoined defendants, Feldstein, Hagen, Desai, and Kociuk (collectively “Defendants”) move to dismiss all claims against them under Fed.R.Civ.P. 12(b)(6). Defendant Thirumalai has not yet moved to dismiss the charges against him, so like this Court’s prior [215]*215Memorandum and Order on Plaintiffs Application for Preliminary Injunction (Docket No. 105), this order does not address the claims against him.

I. Standard of Review

In a motion to dismiss under Fed.R.Civ.P. 12(b)(6), the Court “must assume the truth of all well-plead[ed] facts and give the plaintiff the benefit of all reasonable inferences therefrom.” Ruiz v. Bally Total Fitness Corp., 496 F.3d 1, 5 (1st Cir.2007) (citing Rogan v. Menino, 175 F.3d 75, 77 (1st Cir.1999)). A pleading must contain “a short and plain statement of the claim showing that the pleader is entitled to relief.” Fed.R.Civ.P. 8(a)(2). The pleading standard set forth in Rule 8 does not require “detailed factual allegations, but it demands more than an unadorned, the-defendant-unlawfully-harmed-me accusation.” Bell Atl. Corp. v. Twombly, 550 U.S. 544, 555, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007) (citing Papasan v. Allain, 478 U.S. 265, 286, 106 S.Ct. 2932, 92 L.Ed.2d 209 (1986)). A complaint will not suffice if it offers “naked assertion[s]” devoid of “further factual enhancement.” Twombly, 550 U.S. at 557, 127 S.Ct. 1955. “The plausibility standard is not akin to a probability requirement, but it asks for more than a sheer possibility that a defendant has acted unlawfully.” Ashcroft v. Iqbal, 556 U.S. 662, 678, 129 S.Ct. 1937, 173 L.Ed.2d 868 (2009) (internal quotations omitted). Dismissal is appropriate if plaintiffs well-pleaded facts do not “possess enough heft to show that plaintiff is entitled to relief.” Ruiz Rivera v. Pfizer Pharm., LLC, 521 F.3d 76, 84 (1st Cir.2008) (internal quotations and original alterations omitted). Therefore, under the Twombly/Iqbal standard, Plaintiffs claim must clear two hurdles, (1) the pleaded facts must contain sufficient particularity to be plausible, and (2) they must also, if assumed to be true, establish a prima facie case for relief.

Furthermore, where a party filing or opposing a motion to dismiss under Rule 12(b)(6) presents matters outside the pleadings which are considered by the court, the motion to dismiss will be treated as one for summary" judgment in accordance with Fed.R.Civ.P. 56. Fed.R.Civ.P. 12(b)(6); Trans-Spec Truck Serv. Inc. v. Caterpillar, Inc., 524 F.3d 315, 321 (1st Cir.2008). Courts may consider documents the authenticity of which are not in dispute — such as public records — without converting the motion into one for summary judgment. Id.

II. Facts

A substantial quantity of extrinsic evidence has already been presented to the Court as part of Plaintiffs Application for Preliminary Injunction. However, under the Rule 12(b)(6) standard, the Court will rely only upon the facts contained in Plaintiffs Second Amended Complaint or incorporated therein by reference. For the sake of brevity, the Court hereby incorporates the statement of facts set forth in its prior order (Docket No. 105) to the extent that that statement reflects the facts included in the Second Amended Complaint.3

III. Discussion

Defendants individually move to dismiss every claim against them. The Court will address the motions of Feldstein, Hagen, Desai, and Kociuk. collectively in this order, considering each Count in turn.

[216]*216A. Counts I and II, Misappropriation of Trade Secrets

Count I, raised against Feldstein, Desai, and Kociuk, is for misappropriation of Trade Secrets under Massachusetts common law; Count II, raised against Feldstein, Desai, and Kociuk, is for misappropriation of trade secrets under Mass. Gen. Law ch. 93, § 42, and § 42A. For the reasons set forth in this Court’s prior order, Plaintiff has demonstrated a likelihood of success on the merits with regard to misappropriation. Even considering only the evidence included in the Complaint these allegations contain a level of specificity sufficient to surpass the Twombly/Iqbal plausibility threshold.

B. Count III, Unfair Competition under Mass. Gen. Law ch. 93A

Count III, against Feldstein, Desai, and Kociuk is for unfair competition under Mass. Gen. Law ch. 93A, § 11. This claim is dismissed as against all three defendants as they correctly assert the “intraenterprise” exception to Chapter 93A, § 11. See Guest-Tek Interactive Entm’t, Inc. v. Pullen, 665 F.Supp.2d 42, 46 (D.Mass.2009). Plaintiff attempts to define the employer-employee relationship as existing within normal trade and commerce. This position has been explicitly rejected by the Supreme Judicial Court of Massachusetts. Bertrand v. Quincy Mkt. Cold Storage & Warehouse Co., 728 F.2d 568, 571 (1st Cir.1984); id. (citing Linkage Corp. v. Trustees of Boston University, 425 Mass. 1, 23, 679 N.E.2d 191 (1997); Manning v. Zuckerman, 388 Mass. 8, 13-14, 444 N.E.2d 1262 (1983)).

Plaintiff further argues that the misappropriation claims against Feldstein, Desai, and Kociuk are wholly independent from their employment at AMD, and therefore are no bar to the Chapter 93A claim. See Specialized Tech. Res., Inc. v. JPS Elastomerics Corp., 80 Mass.App.Ct. 841, 847, 957 N.E.2d 1116, 1121 (2011). That is not an accurate assessment of Plaintiffs pleaded claims.

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951 F. Supp. 2d 212, 36 I.E.R. Cas. (BNA) 1029, 2013 WL 2666746, 2013 U.S. Dist. LEXIS 81206, Counsel Stack Legal Research, https://law.counselstack.com/opinion/advanced-micro-devices-inc-v-feldstein-mad-2013.