This case was last updated from U.S. District Courts on 11/20/2021 at 05:17:08 (UTC).

Groupon, Inc. v. Shin

Case Summary

On November 12, 2021, Groupon, Inc. (“Groupon” or “Plaintiff”), represented by Kevin M. Cloutier of Sheppard Mullin Richter & Hampton, LLP, filed a contract lawsuit against Sung Shin (“Shin” or “Defendant”), seeking declaratory and injunctive relief with damages, costs, expenses, and attorneys’ fees for the alleged harm suffered by Plaintiff from the breach of  contractual obligations by Defendant. This case was filed in the U.S. District Court in the Northern District of Illinois.

 

In the complaint, Plaintiff alleged that, “In direct violation of a valid and reasonable contract, Groupon’s Vice President – Global Head of Advertising and Ancillary Revenue, Shin, has resigned from Groupon to join a direct competitor, Yelp, Inc. (“Yelp”). By working for Yelp, Shin will breach his valid and enforceable Confidentiality, Intellectual Property and Restrictive Covenants Agreement (the “Agreement”) with Groupon. Yelp uses a near-identical advertising and marketing platform to compete in connecting consumers to businesses. Groupon and Yelp compete for the same merchants and clients and limited merchant and client spend. Groupon only seeks to prohibit Shin from working for a competitor in a role that is violative of the Agreement and which will require him to inevitably use and disclose Groupon’s trade secrets and proprietary and confidential information. Groupon offered Shin the opportunity to stay employed at Groupon, and it even offered Shin the opportunity to stay on at Groupon until he found a non-competitive role (so he would be gainfully employed at a salary of $275,000 with potential for a bonus, a $100,000 sign-on bonus, and $700,000 in Restricted Share Units, and full benefits while he searched for another role). Shin rejected all overtures, and notably, still refused to repay his $100,000 sign-on bonus despite his resignation per the terms of his offer letter.” 

 

Plaintiff further alleged that, “In his high-level strategic advertising role with Yelp, Shin will use and/or disclose Groupon’s highly technical and hard-earned confidential and proprietary information and trade secrets for Yelp’s benefit. Shin’s presence will allow Yelp to unfairly compete with Groupon without having to do the trial and error work, develop and nurture merchant and client relationships and their advertising objectives, or make the substantial product and service development and enhancement investment itself. This is precisely what Shin agreed not to do when he accepted his employment and executed his Agreement with Groupon.” 

 

Plaintiff lists out four claims for relief. The first claim is for the breach of contract – non-compete. The second claim is for the breach of contract – failure to repay sign-on bonus. The third claim is for the violation of the Illinois Trade Secrets Act, and the fourth claim is for the violation of the Defend Trade Secrets Act. 

 

In the prayer for relief, Plaintiff requested the court to enter a Temporary Restraining Order against Defendant, and Permanent Injunction against Defendant, enjoining Defendant from using, referencing, or disclosing Plaintiff’s trade secrets under the Illinois Trade Secrets Act and Defend Trade Secrets Act and from breaching his non-competition obligations contained in the Agreement. Plaintiff further requested for a declaratory judgment finding that the conduct complained of is illegal and unfair and violates the Agreement between the parties, and an award for actual, compensatory, and exemplary damages together with costs of litigation. 

 

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Case Details Parties Documents Dockets

 

Case Details

  • Case Number:

    1:21-CV-06082

  • Filing Date:

    11/12/2021

  • Case Status:

    Pending - Other Pending

  • Case Type:

    Not Yet Classified

 

Party Details

Plaintiff

GROUPON, INC.

Defendant

SUNG SHIN

Attorney/Law Firm Details

Plaintiff Attorney

Kevin M Cloutier

Attorney at Sheppard Mullin Richter & Hampton, LLP

70 West Madison Streetsuite 4800

Chicago, IL 60602

 

Court Documents

#1

(#1) COMPLAINT filed by GROUPON, INC.; Jury Demand. Filing fee $ 402, receipt number 0752-18869999. (Attachments: #1 Declaration Declarations, #2 Exhibit A to K)(Cloutier, Kevin) (Entered: 11/12/2021)

1 #1

Declaration Declarations

1 #2

Exhibit A to K

#2

(#2) CIVIL Cover Sheet (Cloutier, Kevin) (Entered: 11/12/2021)

#3

(#3) NOTIFICATION of Affiliates pursuant to Local Rule 3.2 by GROUPON, INC. (Cloutier, Kevin) (Entered: 11/12/2021)

#4

(#4) MOTION by Plaintiff GROUPON, INC. for temporary restraining order PLAINTIFF GROUPON, INC.'S EMERGENCY MOTION FOR TEMPORARY RESTRAINING ORDER (Cloutier, Kevin) (Entered: 11/12/2021)

#5

(#5) MOTION by Plaintiff GROUPON, INC. for leave to file excess pages PLAINTIFF'S MOTION FOR LEAVE TO FILE OVERSIZED BRIEF IN SUPPORT OF PLAINTIFF'S EMERGENCY MOTION FOR TEMPORARY RESTRAINING ORDER (Cloutier, Kevin) (Entered: 11/12/2021)

#6

(#6) MEMORANDUM PLAINTIFF GROUPON, INC.'S MEMORANDUM OF LAW IN SUPPORT OF EMERGENCY MOTION FOR TEMPORARY RESTRAINING ORDER (Cloutier, Kevin) (Entered: 11/12/2021)

 

Docket Entries

  • 11/12/2021
  • View Court Documents
  • Docket(#6) MEMORANDUM PLAINTIFF GROUPON, INC.'S MEMORANDUM OF LAW IN SUPPORT OF EMERGENCY MOTION FOR TEMPORARY RESTRAINING ORDER (Cloutier, Kevin) (Entered: 11/12/2021)

    Read MoreRead Less
  • 11/12/2021
  • View Court Documents
  • Docket(#5) MOTION by Plaintiff GROUPON, INC. for leave to file excess pages PLAINTIFF'S MOTION FOR LEAVE TO FILE OVERSIZED BRIEF IN SUPPORT OF PLAINTIFF'S EMERGENCY MOTION FOR TEMPORARY RESTRAINING ORDER (Cloutier, Kevin) (Entered: 11/12/2021)

    Read MoreRead Less
  • 11/12/2021
  • View Court Documents
  • Docket(#4) MOTION by Plaintiff GROUPON, INC. for temporary restraining order PLAINTIFF GROUPON, INC.'S EMERGENCY MOTION FOR TEMPORARY RESTRAINING ORDER (Cloutier, Kevin) (Entered: 11/12/2021)

    Read MoreRead Less
  • 11/12/2021
  • View Court Documents
  • Docket(#3) NOTIFICATION of Affiliates pursuant to Local Rule 3.2 by GROUPON, INC. (Cloutier, Kevin) (Entered: 11/12/2021)

    Read MoreRead Less
  • 11/12/2021
  • View Court Documents
  • Docket(#2) CIVIL Cover Sheet (Cloutier, Kevin) (Entered: 11/12/2021)

    Read MoreRead Less
  • 11/12/2021
  • View Court Documents
  • Docket(#1) COMPLAINT filed by GROUPON, INC.; Jury Demand. Filing fee $ 402, receipt number 0752-18869999. (Attachments: #1 Declaration Declarations, #2 Exhibit A to K)(Cloutier, Kevin) (Entered: 11/12/2021)

    Read MoreRead Less
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