A nearly decade-long legal battle in the U.S. District Court for the Northern District of Illinois recently concluded with a significant jury verdict, underscoring the potentially severe consequences of trade secret theft claims. In Sonrai Systems, LLC v. Anthony M. Romano and The Heil Co. d/b/a Environmental Solutions Group, Case No. 16-cv-03371, a jury awarded Sonrai Systems, LLC (“Sonrai”) nearly $29 million in actual damages and an additional $30 million in punitive damages after determining that its confidential information had been misappropriated.

The conflict began with a failed business relationship between Sonrai, a technology company specializing in automation and data collection for the waste hauling industry, and The Heil Company (“Heil”), a manufacturer of garbage trucks. In 2014, the two companies entered into a confidentiality agreement to explore integrating Sonrai’s proprietary “Vector” technology into Heil’s fleet. Vector is a vehicle information tool that allows a garbage truck fleet operator to monitor relevant data from trucks in real time. After negotiations, Heil and Sonrai were unable to reach a deal for use of the technology. Instead, Heil acquired another company, which it used to develop and launch a competing product called “Enhance.” Sonrai alleged that this new product was developed using its confidential information.

During the negotiations, the then-Executive Vice President of Sonrai worked with Heil to evaluate and demonstrate Sonrai’s technology. He later resigned from Sonrai and joined Heil, where Sonrai claimed he used misappropriated confidential information to aid in the development of Heil’s competing product.          

Sonrai filed suit in 2016, asserting claims under the Defend Trade Secrets Act, the Illinois Trade Secrets Act, breach of contract, and various torts. After nearly nine years of litigation, the case went to a multi-week jury trial. The jury found that Heil had willfully and maliciously misappropriated Sonrai’s trade secrets and breached its contractual obligations, awarding Sonrai $28.9 million in damages. The jury also awarded $30 million in punitive damages against Heil.

This case highlights the need for diligent protection of trade secrets through contracts and internal controls. It sends a resounding message about the high cost of corporate misconduct in the competitive world of industrial technology.

Photo of Steven J. Pearlman Steven J. Pearlman

Steven J. Pearlman is a partner in the Labor & Employment Law Department, where he is Head of the Restrictive Covenants, Trade Secrets & Unfair Competition Group and Co-Head of the Whistleblowing & Retaliation Group.

Employment, Whistleblower, Restrictive Covenant and Trade Secret Practice.

Steven J. Pearlman is a partner in the Labor & Employment Law Department, where he is Head of the Restrictive Covenants, Trade Secrets & Unfair Competition Group and Co-Head of the Whistleblowing & Retaliation Group.

Employment, Whistleblower, Restrictive Covenant and Trade Secret Practice. Steven’s national practice focuses on defending companies in federal and state courts and arbitration against claims of: discrimination, retaliation and harassment, including claims brought by high-level executives; whistleblower retaliation; restrictive covenant violations; theft of trade secrets; and wage-and-hour violations (including class, collective and PAGA actions).

Illustrating his versatility, Steven has successfully handled bench and jury trials in multiple jurisdictions (e.g., Illinois, California, Florida and Texas); defended one of the largest Illinois-only class actions in the history of the federal courts in Chicago; and prevailed following his oral arguments before the Seventh Circuit and state appellate courts. Steven brings his litigation experience to bear in counseling clients to minimize risk and avoid or prepare for success in litigation.

Investigations. Reporting to boards of directors, their audit committees, CEOs and in-house counsel, Steven conducts sensitive investigations and has testified in federal court. His investigations have involved complaints of sexual harassment involving C-suite officers; systemic violations of employment laws and company policies; and fraud, compliance failures and unethical conduct.

Thought Leadership and Accolades. Steven was named Lawyer of the Year for Chicago Labor & Employment Litigation in the 2023 edition of The Best Lawyers in America. He was also named as One of the Top 10 Impactful Labor & Employment Lawyers in Illinois for 2023 by Business Today. He is a Fellow of the College of Labor and Employment Lawyers. Chambers describes Steven as an “outstanding lawyer” who is “very sharp and very responsive,” a “strong advocate,” and an “expert in his field.” Chambers also reports that “He is someone who can navigate the twists and turns of litigation without difficulty. Steven is great with brief-writing, crafting arguments, and making sure the client is always happy.”

Steven was 1 of 12 individuals selected by Compliance Week as a “Top Mind.” Earlier in his career, he was 1 of 5 U.S. lawyers selected by Law360 as a “Rising Star Under 40” in the area of employment law and 1 of “40 Illinois Attorneys Under Forty to Watch” selected by Law Bulletin Publishing Company. Steven is a Burton Award Winner (U.S. Library of Congress) for “Distinguished Legal Writing.”

Steven was appointed to Law360’s Employment Editorial Advisory Board and selected as a Contributor to Forbes.com. He has appeared on Bloomberg News (television and radio) and Yahoo! Finance, and is often quoted in leading publications such as The Wall Street Journal.

The U.S. Chamber of Commerce has engaged Steven to serve as lead counsel on amicus briefs to the U.S. Supreme Court and federal circuit courts of appeal. He was appointed to serve as a Special Assistant Attorney General for the State of Illinois in employment litigation matters. He has presented with the Solicitor of the DOL, the Acting Chair of the EEOC, an EEOC Commissioner, Legal Counsel to the EEOC, and heads of the SEC, CFTC and OSHA whistleblower programs. He is also a member of the Sedona Conference, focusing on trade secret matters.

In 2024, Steven received the Excellence in Pro Bono Service Award from the United States District Court for the Northern District of Illinois and the Chicago Chapter of the Federal Bar Association.

Photo of Nicole O. Swanson Nicole O. Swanson

Nicole Swanson is an associate in the Litigation Department.

Nicole earned her J.D. from New York University School of Law, where she served as a Managing Editor of the Moot Court Board and was elected to the Order of Barristers. While at NYU…

Nicole Swanson is an associate in the Litigation Department.

Nicole earned her J.D. from New York University School of Law, where she served as a Managing Editor of the Moot Court Board and was elected to the Order of Barristers. While at NYU, Nicole externed with the Civil Division of the U.S. Attorney’s Office for the Southern District of New York.

Prior to law school, Nicole served as an AmeriCorps volunteer in Phoenix, Arizona, working with self-represented litigants in family court.

Nicole maintains an active pro bono practice. She volunteers with LIFT (Legal Information for Families Today) to provide family law consults, and serves as a member of LIFT’s junior board. She also supports the New York State Courts’ Pandemic Practices Working Group in its efforts to evaluate court policies adopted in response to COVID-19.

Photo of Connor Villar Connor Villar

Connor Villar is an associate in the Litigation Department and a member of the firm’s Patents Group.

Connor earned his J.D. from Tulane University Law school, Magna Cum Laude, and his B.Eng. from SUNY Maritime College, Cum Laude. While at law…

Connor Villar is an associate in the Litigation Department and a member of the firm’s Patents Group.

Connor earned his J.D. from Tulane University Law school, Magna Cum Laude, and his B.Eng. from SUNY Maritime College, Cum Laude. While at law school, Connor served as a Judicial Extern to Judge James L. Dennis of the Fifth Circuit Court of Appeals, as a Managing Editor of the Tulane Law Review, and successfully sat for the United States Patent and Trademark Registration Exam.