The Insider

Peraton granted injunction in Raytheon case

November 14, 2017 at 4:28 PM

A federal court is requiring Raytheon to impose firewalls on several employees and blocking the contractor from using proprietary information, following a lawsuit filed by Peraton.

Peraton, created through a spin-off of the Harris IT services business, earlier this year filed suit against Raytheon, alleging Raytheon breached its contract and misappropriated Peraton's trade secrets after the two companies considered teaming to bid on two national security contracts.

In a Nov. 7 order, a federal judge partly granted Peraton's motion for a preliminary injunction.

In the court order, the judge wrote that "Peraton has made the required showing that it is likely to succeed in establishing that it provided to Raytheon, and Raytheon is presently in possession of its trade secrets." However, the document noted those protectable trade secrets likely only include its "marked presentations, not its alleged undocumented verbally disclosed secrets."

The court also agreed with Peraton the loss of trade secrets could cause harm.

"Failure to firewall Raytheon employees who have access to and knowledge of Peraton's strategy and technical approach could disadvantage Peraton in competing for those opportunities, valued at over $400 million," the document reads.

The court agreed to preclude Raytheon's "use of [Peraton's] properly marked documents" and to require Raytheon to reimpose firewalls on six named employees.

Raytheon declined to comment, noting it does not discuss matters in litigation. Peraton also declined to comment.