IseeIsee Optical principal Nelson Tin rejects claims from former employer and online eyeglass-selling giant Coastal Contacts Inc. that he misappropriated confidential information and used it to create his new company.
Business in Vancouver reported earlier this month that Coastal Contacts (TSX:COA) had filed a notice of civil claim in B.C. Supreme Court alleging that Tin breached his employment contract by using proprietary knowledge to establish a competing eyeglass and contact lens seller. (See “Coastal Contacts sues former employee for launching competitor” – BIV Daily News; June 9, 2011.)
Tin said in his June 14 statement of defence that he “has not at any time breached any duty owed to Coastal [Contacts].”
He also specifically denies using any confidential information for his own commercial purposes and profiting from knowledge gleaned at Coastal Contacts.
“The defendant did not acquire customer lists and contact information and his knowledge of suppliers was knowledge common to many others in the eyewear business,” reads Tin’s response.
Coastal Contacts asserts that Tin was a laboratory supervisor when he left the company in October 2010. It contends that Tin’s duties included developing Coastal Contacts’ manufacturing process and serving as the primary contact for suppliers.
Its lawsuit says that Tin, in that privileged position, was able to have access to supplier lists, customer lists and detailed financial information.
Coastal Contacts released earnings on June 13 for the second quarter, which ended April 30.
Its sales for the second quarter increased 17% and set a quarterly record of $43.8 million compared to $37.3 million in 2010.
Second quarter 2011 gross margins increased to $13.7 million or 31% compared with $10.3 million or 27% during the same period in the prior year.
Profit in the quarter dipped to $17,000, compared with $382,000 in the same quarter in 2010.
Glen Korstrom
Twitter: GlenKorstrom