Toronto-based Nulogy files suit against client Menasha, alleging misappropriation of trade secrets

Toronto-based supply chain SaaS startup Nulogy has reportedly filed a $60 million lawsuit against Menasha, one of Nulogy’s United States-based clients, as well as Deloitte LLP and Deloitte Consulting LLP.

Menasha has characterized Nulogy’s allegations as “baseless and entirely without merit,” according to The Globe and Mail.

As reported by The Globe and Mail, Nulogy alleges Menasha misappropriated its trade secrets, broke a software licence agreement, and developed a supply chain software similar to Nulogy’s.

The suit, which was filed in the Ontario Superior Court of Justice over the summer, also alleged that Deloitte, which Menasha consulted in 2015, “induced” Menasha to breach its agreement with Nulogy.

Menasha has characterized Nulogy’s allegations as “baseless and entirely without merit,” according to The Globe. Nulogy’s accusations against Menasha are alleged and have yet to be proven in court.

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Founded in 2002, Nulogy aims to bring transparency and visibility into the supply chain, by allowing suppliers, manufacturers, and distributors to collaborate on one platform. The startup, which has operations in North America and the United Kingdom, seeks to improve its clients’ contract packaging and manufacturing operations while facilitating collaboration between consumer brands and their supply chain providers.

The startup is led by CEO Jason Tham who co-founded Nulogy alongside COO Kevin Wong and CTO Jason Yuen.

Nulogy’s customers are spread across 50 countries and include Kellogg’s, ARI Packaging, and DHL. The company raised $14 million from Tola Capital in 2016.

Nulogy’s lawsuit comes a few months after a fellow Canadian tech startup filed a suit over another alleged misappropriation of intellectual property. Over the summer, Halifax-based cryptocurrency startup Groundhog sued New York-based ConsenSys, alleging the Ethereum company accessed Groundhog’s trade secrets to create a competing product.

Isabelle Kirkwood

Isabelle Kirkwood

Isabelle is a Vancouver-based writer with 5+ years of experience in communications and journalism and a lifelong passion for telling stories. For over two years, she has reported on all sides of the Canadian startup ecosystem, from landmark venture deals to public policy, telling the stories of the founders putting Canadian tech on the map.