Suit says CDR used stolen data in fundraising campaigns for Wounded Warriors and Shriners
MONTGOMERY COUNTY, MD (Sept. 18, 2018) – Omni Direct, a leader in direct marketing to Hispanic audiences, recently sued CDR Fundraising Group for breach of contract, fraud and misappropriation of trade secrets. The lawsuit alleges that CDR violated a confidentiality agreement and stole proprietary data which it then used for fundraising campaigns for its clients, the Wounded Warrior Project and the Shriners Hospital for Children. Omni Direct is suing for monetary damages, loss of market value and compensatory and punitive damages. The lawsuit was filed by BakerHostetler.
According to the lawsuit, in 2016, Omni Direct and CDR signed a nondisclosure agreement with the joint intention to collaborate on Hispanic market fundraising campaigns for CDR clients including the USA for United Nations Refugee Agency, Wounded Warriors and Shriners. CDR repeatedly assured Omni Direct that it wanted to develop a long-term partnership and had no intention of creating an in-house Hispanic direct marketing organization. Omni Direct gave CDR confidential market information, media plans, proprietary models, media buying information and marketing consulting assistance. After collaborating on a successful Hispanic market fundraising test campaign for USA for United Nations Refugee Agency in 2017, Omni Direct learned that CDR had misappropriated its proprietary data and processes and used it on behalf of the Wounded Warriors and the Shriners.
According to the lawsuit, CDR and its corporate parent, Moore DM Group, led by Jim Moore, had planned to lull Omni Direct into believing its confidential and trade secret information would be safe in pursuit of a profitable partnership for both companies. The lawsuit states CDR intentionally misled Omni Direct into providing it with valuable proprietary information, while concealing its strategic intent to go-to-market with its own Hispanic direct response offering.
Omni Direct has more than 20 years of experience in Hispanic direct response advertising, accumulating data and expertise on consumer behavior from thousands of direct response campaigns.
“Moore DM Group and CDR misappropriated Omni Direct’s valuable proprietary data in violation of a nondisclosure agreement and shamelessly profited from fundraising efforts for the Shriners and Wounded Warriors,” said BakerHostetler partner John Siegal, attorney for Omni Direct.