NEW YORK, Aug. 20, 2025 /PRNewswire/ — Six years into a $100 million lawsuit brought by Kasowitz LLP on behalf of fintech pioneer FinancialApps, LLC against defendants Envestnet, Inc. and Yodlee, Inc. for trade secret misappropriation, tortious interference, and unfair competition, a Special Master appointed by the Delaware District Court has recommended formal sanctions against both Envestnet (recently acquired by Bain Capital) and Yodlee (recently acquired by STG Partners), to address their intentional spoliation of evidence. Defendants were found to have acted with the “intent to deprive” FinancialApps of “highly relevant” logging data generated by software known as “Papertrail,” which “would have likely [provided] some of the best evidence” of Defendants’ alleged misconduct.
On December 10, 2024, Judge Jennifer L. Hall of the United States District Court for the District of Delaware appointed Chad S.C. Stover as Special Master to provide a Report and Recommendation for the resolution of the parties’ competing spoliation Motions. On August 20, 2025, Special Master Stover’s Report and Recommendation was publicly filed, recommending that the District Court grant the portion of FinancialApps’ motion related to the spoliation of Papertrail data, and deny Defendants’ motion entirely.
A copy of Special Master Stover’s Report and Recommendation may be found here: https://www.kasowitz.com/media/iwwnr3th/finapps-spoliation-report-and-recommendation.pdf.
The Kasowitz LLP team representing FinancialApps is led by partners Marc E. Kasowitz, Matthew A. Kraus, and A. Macdonald Caputo, Jr., and includes associates Joshua Marks, Frank Piacenti, and Kathleen Kennedy.
About Kasowitz LLP
Kasowitz LLP is a leading national law firm with a core focus on commercial litigation, complemented by exceptionally strong bankruptcy/restructuring and real estate transactional practices. Kasowitz is known for its creative, aggressive litigators and willingness to take on tough cases. The firm has extensive trial experience and is always trial-ready, representing both plaintiffs and defendants in every area of litigation. Kasowitz is committed to pursuing aggressive and innovative approaches to its clients’ most challenging legal matters. Headquartered in New York City, the firm also has offices in Atlanta, Boulder, Houston, Los Angeles, Miami, Newark, San Francisco, and Washington, DC. For more information, please visit www.kasowitz.com.
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SOURCE Kasowitz LLP
