Company claims senior employees took confidential data and recruited staff to launch a rival
A new lawsuit filed October 20, 2025, in Atlanta claims a group of senior employees plotted a mass exit, took trade secrets, and launched a rival firm—leaving their former employer reeling.
SGS North America, Inc., a company specializing in construction materials testing, is suing four former employees and their new company, Material TEC, LLC, in federal court. The complaint, filed in the United States District Court for the Northern District of Georgia, alleges the defendants not only left together but also took confidential files, solicited colleagues, and used a similar company name to cause confusion among customers.
According to the lawsuit, the situation began in May 2024, when Shawn McCormick, then a business development and technical manager at SGS, organized Material TEC, LLC in partnership with a former SGS customer. The complaint states that McCormick included “TEC” in the new company’s name to create confusion and mislead customers into believing Material TEC was affiliated with SGS TEC Services. SGS claims that four customers have mistakenly sent materials to SGS TEC for testing when they meant to send them to Material TEC.
The complaint further alleges that McCormick, along with William Cooper, Michael Lyon, and Caleb Howard—all of whom held key positions at SGS—coordinated their departure and the formation of a competing company while still employed. While still...
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