Cygnus Sues Former Employees Over Launch

Cygnus Business Media has filed a lawsuit against Impact Business Media, the company founded by a former employee who left Cygnus this spring with three fellow staffers to launch a competing magazine.

Greg Napert, who launched Director of Maintenance, which competes for advertising dollars with Cygnus’s Aircraft Maintenance Technology, had served as AMT’s group publisher.

According to the complaint filed in Wisconsin Circuit Court and obtained by FOLIO:, Cygnus alleges that Napert—along with former AMT publisher Danny Faupel, editor-in-chief Joe Escobar and national accounts manager Bob Graf—broke confidentiality and non-solicitation agreements and disclosed Cygnus “trade secrets” by taking list information from the AMT Society, which is associated with Cygnus’ AMT magazine.

Cygnus is seeking the return of Cygnus property—including the list information, undetermined punitive damages and reimbursement for legal fees and expenses.

“Cygnus, like any other company, will do everything it can to protect its assets,” co-CEO Carr Davis wrote in an e-mail to FOLIO:. Napert declined to comment.

The complaint alleges that Napert obtained the list information by sending several e-mails containing “confidential proprietary business information and trade secrets” from his business account to a personal account. Cygnus claims it discovered unauthorized software installed on Napert’s computer “for the purpose of deleting or destroying data” in an “apparent attempt to conceal information on the computer and/or to intentionally destroy Cygnus’ data.”

The complaint also alleges that during their employment at Cygnus, Napert, Faupel, Escobar and Graf solicited the publisher’s customers “for purposes of selling subscriptions and/or advertising” for their new magazine. It goes on to allege that they “intentionally interfered with Cygnus’ contractual relationships” by breaking confidentiality and non-solicitation agreements, which state that they would not directly or indirectly encourage or cause any employee—including themselves—to quit and work for a competitor.

In a May interview with FOLIO:, Napert said he did not sign a non-compete agreement with Cygnus.

At an injunction hearing held late last month, legal counsel representing Cygnus and Impact Business Media indicated that the parties had “reached agreements” and that they would “work in good faith” to “resolve all the issues before the Court.”

A Cygnus spokesperson declined to comment on the status of the lawsuit.

COMMENTS: 41

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Cygnus Sucks

Submitted by Anonymous on Thu, 07/17/2008 - 16:07.

It treats its employees like excrement and then sues them when they finally get tired of being abused and launch their own titles. What a horrible company.

Finally

Submitted by Anonymous on Thu, 07/17/2008 - 17:17.

Too often employees view work product as theirs and decide to "borrow" it when they leave. I for one am glad to see a company finally take a stand and protect company assets. In the end, it benefits those company employees who work every day to support their families.

DOM Magazine

Submitted by Anonymous on Thu, 07/17/2008 - 20:08.

I do believe in free enterprise but I would say these guys deserve to be sued. How could they not have stolen proprietory information. They should have waited at least one year then go ahead but immediantly upon leaving? Something really stinks there. As for the advertisers in their new publication sounds like they endorse the idea that stealing from one's employer is ok. Hmmm might have to rethink whom I purchase from if this is the sort of business ethics they endorse.

Ignore the above two plants--this lawsuit is ridiculous

Submitted by You Guys Are Plants on Thu, 07/17/2008 - 21:35.

Obviously, Mr. and Mrs. Anonymous are either plants for Cygnus, or else cohorts of its ethic-free owners. No one else would possibly endorse this ridiculous lawsuit. Are Davis and O'Brien so determined to drag the company into the mud, after all the bad press it's already gotten over their other disgusting escapades? For crying out loud, this company has already proven itself incapable of treating its employees with respect. To now sue them when they leave, when you're the reason they left in the first place, is ridiculous. Furthermore, the notion that they should have waited a year before starting their own business is even more laughable. They have every right to start their own business, and the only people who'd be able to go a year without income are people like Davis and O'Brien, who have gotten fat and wealthy by screwing those who work for them. This lawsuit is an embarrassment for Cygnus, and for the publishing industry in general, and it's no surprise the bloodsuckers who run that place would resort to this level of scumbaggery.

whoa

Submitted by Anonymous on Thu, 07/17/2008 - 22:21.

Whoa!! caution with your accusations. Proof is required in our legal system. Anyone can accuse, this smacks of sour grapes on Cyngus's part.

Read

Submitted by Anonymous on Fri, 07/18/2008 - 07:24.

Don't you just hate people that cannot read.. The word on the complaint is "alleges". That does not make it true.

DOM anon

Submitted by Anonymous on Fri, 07/18/2008 - 07:43.

Re-think your purchase decisions? Where do you think they learned their business ethics? If I were you, I'd steer clear of both of these properties.

That's classic

Submitted by Anonymous on Fri, 07/18/2008 - 08:06.

Comment #1 is blaming Cygnus for initiating action when these guys walk off with proprietary information and one of them is apparently caught with masking software on his computer to cover up the theft. Yup, that sounds like Cygnus is the bad guy here.

Anyone can start a publication

Submitted by Anonymous on Fri, 07/18/2008 - 09:16.

No employer can stop employees from walking away and starting a competing property. Napert and the other people that left Cygnus can do whatever they like once they leave. It appears that's the issue though -- they started feathering their nest before they left. No matter what you've done to grow a property for your employer everything you've done while you're taking a paycheck is the property of that company -- no matter what you did to create it or facilitate it. Everyone has a right to start a business but you shouldn't use another firm's property to do it.

No big surprise...if you

Submitted by Anonymous on Fri, 07/18/2008 - 09:27.

No big surprise...if you know you can't compete, sue. I doubt much if anything will come from this. There isn't a piece of information out there that Cygnus has, that you can't get from associations like EAA, etc. This seems to be just a bit of "grand standing" by Cygnus. As mentioned above..."alleges" is the key word for now. Wouldn't their energy and Dollars be better spent trying to compete?

Fear is the Mind Killer

Submitted by Anonymous on Fri, 07/18/2008 - 10:25.

Some of these comments seem to be based on a state of fear. They are number of people at every company that believe that they hardly deserve what they have at the company, the company was just too kind in giving them their position and anyone that strays away from the company must be wrong. These nervous lap dogs are very like to bark to protect their masters and are not able to see the truth thru the fog of their fear. This is just misplaced loyalty. The company will always do what is perceived as best for the owners. So that comfortable lap may disappear and all the barking in the world will not bring it back.

Look before you leap

Submitted by Anonymous on Fri, 07/18/2008 - 11:01.

I have been reading about Dr. Steven Hatfill in the news recently. He is the scientist the government accused of being involved in the anthrax attacks in 2001. The government was quick to leak information to the press (and the press was quick to publish negative articles) regarding Hatfill’s alleged involvement in the attacks. Hatfill was later pronounced innocent of all charges, but not before his career was ruined. Hatfill sued the U.S. government and the media for ruining his career. The Government settled with Hatfill last month for millions of dollars, and the suit against the press, namely the New York Times, is ongoing. In his article Anthrax Scientist Steven Hatfill Vs. The Media: The Despicable Record, Post Chronicle writer Cliff Kincaid notes, “The case demonstrates that not all “leaks” to the press are good and that anonymous sources should not be trusted. Hatfill’s reputation and career were ruined by FBI agents and other government officials leaking damaging but false information.”

Cygnus sues former emplyees

Submitted by Anonymous on Fri, 07/18/2008 - 11:51.

When the evidence of wrong doing (stealing records and installing unapproved software onto the company computer to mask this) is so overwhelming that the parties being sued agree to settle before going to court...I think is is safe to assume the allegations are true...otherwise, why settle? What will happen to their new magazine?..its will probably go from DOM to DOA.

Hey looker, look again

Submitted by Anonymous on Fri, 07/18/2008 - 11:53.

What happened to Dr. Hatfill has no bearing here. The Folio article reported on a civil action that is ongoing. It's a matter of public record.

AMT Subscriptions

Submitted by Anonymous on Sat, 07/19/2008 - 13:22.

I may have misunderstood, but I thought I once heard former Cygnus President Rich Reiff say that the FAA required commercial aircraft maintenance crews to subscribe to AMT. I thought that was strange at the time, but if it's true, then that would raise issues about whether or not the AMT subscriber list was public record or not. I know that some Cygnus contractors were required to sign non-compete agreements but I know that not all employees in the past had to sign them. I don't know what their current policy is, however.

Unauthorized Software

Submitted by Anonymous on Sun, 07/20/2008 - 12:41.

If Napert had Norton Utilities or a similar program on his computer, he would probably have had a "Wipe Info" or secure delete feature as part of the software package. Those Cygnus employees who have newer Macs may have it as part of the Apple system software (see the Finder menu if you have one). The presence of a secure delete program in no way proves Napert was destroying Cygnus property or trying to hide something. If he spent his own money to put a program on their computer that would repair damage to the software and prevent it from crashing, that is hardly evidence of wrongdoing. To the contrary, if that's the case, he was doing the company a favor.

Must be a slow news day....

Submitted by Anonymous on Mon, 07/21/2008 - 08:45.

....to put this on as a top story again. Maybe Cygnus is the only way you guys can get your numbers up to sell ads on the web.

Publishingly Incorrect

Submitted by Mr. Big on Mon, 07/21/2008 - 09:27.

Hey you left a red flag by having "software" on your computer it's your guys fault. Hopefully you didn't "borrow" anything from Cygnus! You know former employees have left like the previous Pres. and VP who obviously used Cygnus time to get their company going but they didn't steal anything..or did they??

the thought of tony and carr

Submitted by Anonymous on Mon, 07/21/2008 - 12:11.

the thought of tony and carr suing anyone over unethical behavior is just beyond the pale. someday these con men are going to have to pay up for everything they've done.

Not sure how one can

Submitted by Anonymous on Mon, 07/21/2008 - 12:55.

Not sure how one can overlook the "alleged" part of this blog...What I do know is this...if I left a company, and had booked air fare or hotels with my own credit card through the company computer in the past, I would make darn sure I'd wipe that computer clean...you never know who will get that computer next...

Red Flag?

Submitted by Anonymous on Mon, 07/21/2008 - 13:23.

To Mr. Big: If you were responding to "Unauthorized Software," I should point out that I (the person who posted the comment) am not Greg Napert nor do I have any association with him, past or present. I made the comment because I know that historically, Cygnus has not always provided employees with the latest hardware or software, and some employees have resorted to buying their own just so that they could do their jobs.

Sycophant

Submitted by Anonymous on Mon, 07/21/2008 - 17:03.

Don't you love that word? There is more to this than meets the jaundiced eyes of those that admire abusive power. Long live the risk takers, for they will at least make your lives more interesting.

It is working

Submitted by Hiding on Tue, 07/22/2008 - 13:30.

If publishing Cygnus dirt is Folio:'s way of boosting its numbers, it seems to work. From wearing jeans to taking theives to court, Cygnus stories get noticed. Good job, Folio: guys!

Sour Grapes

Submitted by Anonymous on Wed, 07/23/2008 - 01:43.

Sour Grapes and CYA Just because Cygnus says this happened doesn't have any bearing on the truth. They had to do something to CYA and to attempt to stop the publishing of a competitor. This isn't difficult to figure out. Be careful forming an opinion about a situation and people you are all just spectulating about. Some of you could do the reasearch read the complaint and look at see if you access the information pubically. I am guessing you can. It is just way too much fun to believe damaging accusations about others, form judgements and opinions based on little if no information and bash those people in the public eye. Oh, I must have forgotten this is ethics.

re Sour Grapes

Submitted by Anonymous on Wed, 07/23/2008 - 17:04.

First off, don't be afraid to use spell check. Second, the information points out that the sides are working on a settlement at this point - that takes almost no research to find out. If those being accused are free of any guilt why then would they be open to a settlement? You sarcastically bring up ethics but want to overlook the lack of in the accused.

re re Sour Grapes

Submitted by Anoniem on Thu, 07/24/2008 - 08:46.

There is no logic to your question:"If those being accused are free of any guilt why then would they be open to a settlement?" You do not know who is looking for a settlement, Cygnus, DOM or both. A settlement is not an admission of anything; it is simply a way to end something in a way that satisfies both parties. You just have a bias and you are letting that bias dictate your thinking.

Hun, grab the towels before we checkout

Submitted by Anonymous on Thu, 07/24/2008 - 10:54.

It was not the unauthorized nature of the software that is at issue, it was how it was used that showed willful intent to conceal actions he knew was illegal. i.e. If I use a diskwipe tool on a regular basis as a means of security, then fine...but if I install this tool 1 day before leaving a company and wipe all of my files out, both personal and company, then the intent is clear. The presence of the software and the logs of it's use are important because it shows that he knew his actions were below board. As for the evidence of theft, I am continually amazed that people don't realize that every electronic action they take leaves a very detailed audit trail. And delete doesn't really mean delete...it means hide it from my view.

Re: Hun, grab the towels before we checkout

Submitted by Anonymous on Thu, 07/24/2008 - 13:47.

You seem to know a lot about the case. Maybe you could share a little more. If what you say is true and what he did was illegal, then why not call the cops?

What is wrong with you people?

Submitted by Ripe Grapes on Thu, 07/24/2008 - 15:47.

This ia civil case, not a legal one and it is all business as usual. As for the deleting stuff, maybe he had stuff on there about the new business he didn't want anyone to see. Maybe the only thing he is guilt of is being indiscreet.

I like it

Submitted by Anonymous on Fri, 07/25/2008 - 14:58.

I received a copy of DOM and loved it. I will continue to belong to AMT but Dom spelled out a lot of infomation for me as I am both a DOM and a mechanic. So AMT either needs to spice it up or shut it up.