Complaint Review: Henry Liang and Steve Deutsch

On April 7, 2011 Judge James W. Brown of the Santa Barbara Superior Court issued an Order RESTRAINING Defendant Henry Liang and Defendant Steve Deutsch, and those acting in concert with them, from disclosing proprietary information of plaintiffs or deleting or altering same.

Concurrent with their motion, plaintiffs filed a lawsuit for Breach of Contract, Fiduciary Duty and Misappropriation against Defendant Henry Liang and Defendant Steve Deutsch.

Plaintiffs allege that Defendant Henry Liang conducted inappropriate behavior towards two female associates, including remarks of a sexual nature; Defendant Henry Liang also used company funds to attend a strip club with Defendant Steve Deutsch and thereafter attempted to write-off the expenses to plaintiffs as legitimate business expenses.  Defendant Henry Liang also attempted to deceitfully access company funds by instructing the company's accounting division to issue him a $1,500 check, in excess of his allotted health care coverage.

Plaintiffs allege that Defendant Steve Deutsch misrepresented plaintiffs entities, conducted impermissible side businesses and potentially usurped business opportunities of plaintiffs.

Defendant Henry Liang's business relationship with plaintiffs was terminated on March 15, 2011.

Defendant Steve Deutsch's business relationship with plaintiffs relationship was terminated on April 1, 2011.

Upon further investigation, it was discovered that Defendant Henry Liang and Defendant Steve Deutsch were colluding to start a new venture with business associates of plaintiffs, Zach Merck and Jonathan Sweet, and in doing so, duplicated and utilized plaintiffs confidential and proprietary information.