MachiningCloud Brings Litigation Against Kennametal for Theft of Trade Secrets and Breach of Contract

Complaint Arises from Kennametal’s Malicious Use of MachiningCloud’s Intellectual Property to Enrich Itself While Failing to Pay Commissions at Expense of MachiningCloud

Complaint Seeks in Excess of $330 Million in Cash Damages, Punitive and Exemplary Damages and Injunctive Relief

CAMARILLO, Calif., Feb. 4, 2025 /PRNewswire/ — MachiningCloud (the “Company”) today announced that it has initiated a lawsuit in the Superior Court of the State of California, County of Ventura, against Kennametal Inc. (“Kennametal”) to protect MachiningCloud’s business and the Company’s intellectual property rights. The lawsuit asserts that Kennametal stole trade secrets and contractually protected confidential information from MachiningCloud and failed to pay clearly owed commissions pursuant to an agreement between the two companies (the “Agreement”).

Specifically, the lawsuit outlines how Kennametal contracted with the Company to build “Novo,” a proprietary sales platform for Kennametal. Over time, Kennametal used the Company’s confidential information and intellectual property to build its own competing platform. Kennametal went as far as to file an illegitimate patent application for its knock-off platform. At the same time Kennametal failed to pay MachiningCloud commissions it owed on more than $1 billion of transactions initiated by or through the use of Novo.



In doing so, the lawsuit asserts, among other things, that Kennametal:

  • Breached provisions in the Agreement regarding confidentiality, payment rights and audit and accounting rights;
  • Violated the California Uniform Trade Secrets Act; and
  • Breached the implied covenant of good faith and fair dealing.

MachiningCloud issued the following statement:

MachiningCloud is proud to be a trusted partner to our network of industry-leading customers, providing unparalleled data access and seamless solutions that enable greater innovation and success.

Since we discovered Kennametal’s actions, we have repeatedly attempted to reach an amicable resolution with Kennametal to avoid bringing this litigation. Unfortunately, we were ultimately forced to take the steps necessary to protect our company and our intellectual property.

We believe this is a simple case of a large company trying to take advantage of a smaller company by stealing its trade secrets and contractually-protected confidential information and then refusing to pay commissions it clearly owed.

We are confident in our legal position, and we intend to hold Kennametal accountable for its willful and malicious actions.

MachiningCloud is seeking in excess of $330 million in cash damages, punitive and exemplary damages and injunctive relief that would enjoin Kennametal from further acquiring, disclosing or using MachiningCloud’s trade secrets, and would shut down Kennametal’s knock-off system and platform.

Stubbs Alderton & Markiles, LLP is serving as legal counsel to MachiningCloud.

About MachiningCloud

MachiningCloud is a cloud-based platform that delivers up-to-date cutting tool manufacturers’ product data to manufacturers, engineers, and machinists around the globe. By providing instant access to the latest product information, MachiningCloud enables users to increase productivity, reduce errors, and improve overall efficiency in the machining process.

Contact

Aaron Palash / Spencer Hoffman

Joele Frank, Wilkinson Brimmer Katcher

212-355-4449

 

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SOURCE MachiningCloud

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