IQ Solutions Inc. v. Manhattan Strategy Group

CourtDistrict Court, D. Maryland
DecidedMay 7, 2025
Docket1:24-cv-03201
StatusUnknown

This text of IQ Solutions Inc. v. Manhattan Strategy Group (IQ Solutions Inc. v. Manhattan Strategy Group) is published on Counsel Stack Legal Research, covering District Court, D. Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
IQ Solutions Inc. v. Manhattan Strategy Group, (D. Md. 2025).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF MARYLAND

* IQ SOLUTIONS, INC., * * Plaintiff, * * v. * Civil Case No.: SAG-24-03201 * MANHATTAN STRATEGY GROUP, * LLC, et al., * * Defendants. * * * * * * * * * * * * * * * MEMORANDUM OPINION

Plaintiff IQ Solutions, Inc. (“IQS”) filed an amended complaint against Manhattan Strategy Group, LLC (“MSG”) and Shannon Loomis (collectively, “Defendants”) seeking redress for alleged breach of a non-compete agreement, misappropriation of its trade secrets, tortious interference with contract, breach of fiduciary duties, and civil conspiracy, ECF 11. Defendants have filed a Motion to Dismiss the Amended Complaint (“Motion”), ECF 15. The issues have been fully briefed, ECF 16, 17, and no hearing is necessary. See Loc. R. 105.6 (D. Md. 2023). For the following reasons, Defendants’ Motion will be granted in part and denied in part. I. BACKGROUND The following facts are derived from the Amended Complaint, ECF 11, and are taken as true for purposes of evaluating Defendants’ Motion. IQS and MQS provide consulting services in the health care industry and both are headquartered in the D.C. suburbs in southern Maryland. Id. ¶¶ 8,9. Loomis joined IQS in June, 2017 to serve as the project coordinator for a contract with the Substance Abuse and Mental Health Services Administration (“SAMHSA”). Id. ¶ 10 IQS had repeatedly won the contract and had provided services to SAMHSA since 2014. Id. ¶¶ 1, 15 In 2024, Loomis resigned her position, effective March 20, 2024. Id. ¶ 12. At the time of her resignation, the industry was anticipating that SAMHSA would again solicit bids for a follow- on contract, since its existing contract with IQS was scheduled to end on August 29, 2024. Id. ¶ 15. Sure enough, on April 3, 2024, SAMHSA issued its Request for Task Order Proposals for the follow-on contract. Id. ¶ 18.

During the last two procurement cycles, IQS had contracted with the American Institutes for Research (“AIR”) to provide services for the contract. Id. ¶ 17. AIR initially indicated that it would continue to team with IQS for its new bid, but after the solicitation was released, AIR decided not to team with IQS. Id. ¶ 19. Instead, upon information and belief, AIR teamed with MSG on its bid. Id. ¶ 20. On or before the proposal due date of May 3, 2024, IQS and MSG submitted proposals. Id. ¶ 21. On August 16, 2024, SAMSHA notified IQS that the contract had been awarded to MSG. Id. ¶ 22. The “debriefing letter” indicated that IQS had the second highest technical score, behind MSG. Id. ¶ 23. Factors considered in assigning a technical score include the organization’s “key

personnel.” Id. IQS and MSG held a “transition meeting” to discuss transitioning the contractual responsibilities. Id. ¶¶ 24, 25. Loomis attended as MSG’s Project Director for the contract, the same role she had held at IQS. Id. ¶ 25. Loomis’s participation for MSG would have boosted MSG’s technical score because she had been the project director for years. Id. During the transition meeting, Loomis asked IQS to provide specific documents to MSG, including some that were several years out of date and would not have been used in her day-to- day work. Id. ¶ 26. A forensic computer examination demonstrated that in the week before Loomis’s departure from IQS, between March 14 and March 20, 2024, Loomis accessed several sensitive and proprietary files she would have no reason to access, including information relating to the SAMHSA Contract. Id. ¶ 47. Additionally, in the week leading up to March 20, 2024, Loomis downloaded a number of SAMHSA-related documents that were atypical of her usual activity and were unaccompanied by any uploads or updates explaining the reason for her access. Id. ¶ 48. On her last day in the office, March 20, 2024, Loomis accessed documents relating to the

SAMHSA contract and upcoming proposal, in addition to business development files 49. At least two of the files were in a folder with “limited exclusive access only available to IQS’s controller and operations chief” and had no relation to her work as project director for SAMHSA. Id. ¶ 50. By Loomis’s last day of work, her work duties had already been transitioned to another Project Director. Id. ¶ 51. She therefore had no work-related reason to be accessing or downloading documents relating to the SAMHSA contract or upcoming bid. Id. ¶ 52-53. Some of these same documents, however, are among the document she requested during the transition meeting. Id. ¶¶ 54–56. IQS also alleges, “on information and belief,” that Loomis conspired to solicit AIR’s

services for MSG on the re-compete bid, id. ¶ 60, and that Loomis solicited Sofia Cabrera, a Training and Outreach Specialist, to resign from IQS and work for MSG. Id. ¶¶ 62–64. II. LEGAL STANDARDS Under Rule 12(b)(6), a defendant may test the legal sufficiency of a complaint by way of a motion to dismiss. See In re Birmingham, 846 F.3d 88, 92 (4th Cir. 2017); Goines v. Valley Cmty. Servs. Bd., 822 F.3d 159, 165–66 (4th Cir. 2016); McBurney v. Cuccinelli, 616 F.3d 393, 408 (4th Cir. 2010), aff’d sub nom., McBurney v. Young, 569 U.S. 221 (2013); Edwards v. City of Goldsboro, 178 F.3d 231, 243 (4th Cir. 1999). A Rule 12(b)(6) motion constitutes an assertion by a defendant that, even if the facts alleged by a plaintiff are true, the complaint fails as a matter of law “to state a claim upon which relief can be granted.” Whether a complaint states a claim for relief is assessed by reference to the pleading requirements of Federal Rule of Civil Procedure 8(a)(2). That rule provides that a complaint must contain a “short and plain statement of the claim showing that the pleader is entitled to relief.” The

purpose of the rule is to provide the defendants with “fair notice” of the claims and the “grounds” for entitlement to relief. Bell Atl. Corp. v. Twombly, 550 U.S. 544, 555-56 (2007). To survive a motion under Federal Rule of Civil Procedure 12(b)(6), a complaint must contain facts sufficient to “state a claim to relief that is plausible on its face.” Twombly, 550 U.S. at 570; see Ashcroft v. Iqbal, 556 U.S. 662, 684 (2009) (“Our decision in Twombly expounded the pleading standard for all civil actions[.]”) (quotation omitted); see also Willner v. Dimon, 849 F.3d 93, 112 (4th Cir. 2017). However, a plaintiff need not include “detailed factual allegations” in order to satisfy Rule 8(a)(2). Twombly, 550 U.S. at 555. Further, federal pleading rules “do not countenance dismissal of a complaint for imperfect statement of the legal theory supporting the

claim asserted.” Johnson v. City of Shelby, Miss., 574 U.S. 10, 11 (2014) (per curiam). Nevertheless, the rule demands more than bald accusations or mere speculation. Twombly, 550 U.S. at 555; see Painter’s Mill Grille, LLC v. Brown, 716 F.3d 342, 350 (4th Cir. 2013). If a complaint provides no more than “labels and conclusions” or “a formulaic recitation of the elements of a cause of action,” it is insufficient. Twombly, 550 U.S. at 555. Rather, to satisfy the minimal requirements of Rule 8(a)(2), the complaint must set forth “enough factual matter (taken as true) to suggest” a cognizable cause of action, “even if … [the] actual proof of those facts is improbable and … recovery is very remote and unlikely.” Twombly, 550 U.S. at 556.

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