Israeli Court Dismisses 2.7 Million Shekel Lawsuit Against Former Employee

The Regional Labor Court in Tel Aviv has dismissed a NIS 2.7 million lawsuit filed by scientific equipment company Agentech against its former employee, Yael Friedman-Geier. Agentech had accused Friedman-Geier of stealing trade secrets. The court ordered Agentech to pay NIS 50,000 in legal expenses, a significant sum for labor court proceedings, after determining that the company's claims were "absurd."

Agentech, which imports and distributes scientific and medical equipment, alleged that Friedman-Geier, who worked in sales support from 2016 to 2020, sabotaged its relationship with Danish company FOSS while employed there. Agentech claimed Friedman-Geier used internal information to secure FOSS's representation in Israel for her own newly established company, Soltech Analytics, after resigning during the COVID-19 pandemic.

Friedman-Geier countered that FOSS terminated its contract with Agentech due to poor service and argued that Agentech, as an importer and distributor, did not possess proprietary trade secrets. Judge Tomer Silora found Agentech's claims regarding trade secrets to be "completely amorphous, not to say vague," and lacking the specificity required by law. He noted that Agentech failed to demonstrate it had taken measures to protect any alleged secrets.

The court further ruled that Agentech did not prove Friedman-Geier had undermined its relationship with FOSS or solicited the Danish company's representation. Silora stated that Agentech's own poor handling of the FOSS relationship, which led to the contract's termination, demonstrated that its business practices did not provide a competitive advantage, but rather the opposite. The judge emphasized that Friedman-Geier's conduct was not improper and did not breach her duty of good faith.