Houston Chronicle

Apache says trade secrets taken by former executive

- By Natalie Posgate

Apache Corp. has filed suit against the former head of its Egyptian operations, alleging that the executive misappropr­iated sensitive trade secrets earlier this year when he left the Houston oil and gas company to help create a startup firm that would compete with Apache for business.

At Apache’s request, Harris County District Judge Jeff Shadwick issued a temporary restrainin­g order Tuesday prohibitin­g Thomas M. Maher and the startup, Apex Internatio­nal Energy Management, from using or disclosing any of Apache’s trade secrets and ordered them to surrender the trade secrets to their lawyers.

“Apache is very concerned with the informatio­n it has confirmed regarding the actions and details of Mr. Tom Maher’s departure from the company,” Apache spokeswoma­n Castlen Kennedy said in a written statement.

“We take the security of our proprietar­y, confidenti­al, and trade secret informatio­n seriously, which is why we have requested immediate court action.”

Houston attorney Craig Smyser, who is defending Maher and Apex, declined to comment on the lawsuit, but said his clients agreed to the terms of Tuesday’s court order.

Maher left the company for Apex earlier this month, the lawsuit says. Apache alleges Maher downloaded more than 230,000 Apache files to as many as nine portable USB drives between February and his last day at Apache on May 9 and brought the files over to his new job at Apex, where he serves as president and chief operating officer. ‘Massive amount’

Among other things, the files include Apache’s “well, seismic survey, concession-bidding and financial informatio­n,” the lawsuit says.

Tim Shelby, one of Apache’s lawyers, described the amount of informatio­n Maher walked out with as “a massive amount” and a “huge security risk.”

According to Apache, Maher began communicat­ing with Apex executives as early as November of last year, including Apex CEO Roger Plank, who is a former Apache president.

In addition to misappropr­iating trade secrets, the suit alleges Maher “played double agent, cementing his position at Apex while simultaneo­usly remaining privy to the most sensitive of Apache internal discussion­s at the executive and board levels.”

This included meetings Maher arranged on behalf of Apex with top Egypt officials to inform them of “Apex’s intent to do business in Egypt as an Apache competitor and to begin to solicit” the Egypt officials, including the minister with ultimate authority of oil and gas operations in Egypt, especially with respect to foreign investment, the lawsuit says.

“As a direct and proximate result of defendants’ conduct, Apache will suffer irreparabl­e harm,” the complaint says.

“Specifical­ly, defendants are using Apache’s confidenti­al, proprietar­y and trade secret informatio­n to gain an illegal advantage over Apache.” Restrainin­g order

Besides the restrainin­g order, Apache’s lawsuit asks for monetary damages to be awarded, including any compensati­on Maher and Apex received “as a result of their misappropr­iation of Apache’s trade secrets.”

The temporary restrainin­g order expires June 24.

Apache’s request for further injunction of the defendants from using its trade secrets will be determined at a June 20 hearing. For a longer version of this article, subscribe to TexasLawbo­ok.net, which covers business law in Texas.

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