Vancouver-based online contact lens seller Coastal Contacts Inc. is suing former employee Nelson Tin for allegedly misappropriating confidential information and using it to launch a competing venture named IseeIsee Optical.
Tin was a laboratory supervisor when he left Coastal Contacts (TSX:COA) in October 2010. His duties included developing Coastal Contacts’ manufacturing process and serving as the primary contact for suppliers.
According to the lawsuit filed June 1, that privileged position enabled Tin to have access to supplier lists, customer lists and detailed financial information, Coastal Contacts, which releases its second quarter earnings on June 13, claims that Tin also knew some of the ways that the company cuts costs.
For example, it sources generic product from obscure third-party suppliers and uses an eyeglass edging machine called Nidek.
Coastal Contacts claims that Tin’s employment contract required him to keep that information confidential.
Many Vancouverites know Coastal Contacts from its advertising, which prominently features legendary Vancouver Canucks centre Trevor Linden.
The company features Linden in advertising not only in Vancouver but also across North America, Coastal Contacts CEO Roger Hardy told Business in Vancouver last week.
The company generated $153.2 million in its 2010 fiscal year, up 10% from $139.9 million in 2009.
“2010 was about Canadian growth,” Hardy said. “I think 2011 will probably be a bit more about more growth out of the U.S. and in Europe.”
Glen Korstrom
Twitter: Glen Korstrom