SecurityScorecard, a New York-based cyber risk ratings vendor, has initiated legal action against Safe Security, its cyber risk management competitor, for alleged unfair competition and misappropriation of trade secrets. The lawsuit, filed in the Southern District of New York, alleges that Safe Security has engaged in unlawful practices to gain a competitive advantage in the cybersecurity risk management market.
The crux of the lawsuit revolves around the actions of Mary Polyakova, a former employee of SecurityScorecard who recently joined Safe Security as its sales vice president. SecurityScorecard claims that Polyakova misappropriated confidential information, including a list of customers and prospects, before leaving the company. This information, valued at $40 million, reportedly included details of 9,300 customers and prospects.
SecurityScorecard has accused Safe Security of relying on illegal tactics, such as accessing confidential information and poaching customers, to build its business. The company contends that Safe Security’s actions could damage its business prospects and harm its interests in the cybersecurity market.
In response to the allegations, Safe Security CEO Saket Modi has refuted the claims, arguing that SecurityScorecard is resorting to legal action due to its business challenges. Modi asserts that SecurityScorecard has been laying off employees and facing financial difficulties, prompting it to pursue legal retribution against its competitors.
SecurityScorecard has detailed the specific instances of alleged misconduct by Safe Security, including the misuse of stolen customer information and unauthorized access to SecurityScorecard’s customer platform. The company claims that Safe Security used fake accounts to gather competitive intelligence and make misleading comparisons on its website, in violation of SecurityScorecard’s end-user agreements.
Furthermore, SecurityScorecard has accused Safe Security of conducting fake job interviews with its employees to extract confidential business information. The company is seeking monetary damages and a stay order to prevent Safe Security and Polyakova from using or disclosing the stolen information.
Overall, SecurityScorecard is seeking injunctive relief to halt what it perceives as unlawful practices by Safe Security and protect its trade secrets and proprietary information. The company emphasizes the significant investment it has made in developing its customer base and safeguards to protect its proprietary data.
As the legal battle between SecurityScorecard and Safe Security unfolds, the cybersecurity industry will be closely watching the outcome of this high-stakes dispute. The implications of this case could have far-reaching consequences for how companies in the cybersecurity sector handle sensitive information and compete in the market. SecurityScorecard’s actions underscore the importance of safeguarding confidential data and upholding ethical business practices in the cybersecurity industry.