Voluntary Dismissal of Noncompete Case in Federal District Court

On January 26, 2023, Eastern Computer Exchange, Inc. voluntarily dismissed with prejudice its claims alleging breach of restrictive covenants against clients represented by Z&Z Attorney James M. Moriarty and attorneys Robert S. Freidman, Joshua Schlenger, and Meghan M. Stuer of Sheppard Mullin Richter & Hampton LLP.

The dismissal was obtained after the action was removed to federal district court and an application for an injunction was defeated following a full day evidentiary hearing.  The dismissal also comes at a time when the Federal Trade Commission is proposing a rule that would ban noncompete clauses in employment agreements.  See The End of Noncompetes?  Defendants Win—While FTC Proposes Change, Connecticut Law Tribune, January 31, 2023.