NavSav Holdings IV, LLC is accusing the former owners of Pointer Insurance Agency of misappropriating confidential client data after a $5,405,000 asset sale.
In a complaint filed in the United States District Court for the Eastern District of Louisiana, NavSav Holdings IV, LLC, a Texas limited liability company, alleges that Ashley Johnson and Christopher Johnson, along with Pointer Insurance Agency, LLC and Insurance America LLC, misappropriated trade secrets and confidential information in violation of agreements tied to the sale of Pointer Insurance’s assets.
According to the complaint, the Johnsons, as principals, sold the assets of Pointer Insurance to NavSav for $5,405,000 on May 1, 2023. As part of the transaction, the Johnsons were obligated to deliver all data and information maintained in Pointer Insurance’s data management system - referred to as the Pointer Management System - including confidential information regarding customer names, contacts, financials, and policy information. NavSav alleges that the Johnsons refused to execute a license transfer agreement, which would have delivered direct access to the Pointer Management System to NavSav and allowed them to restrict the Johnsons’ access to client data.
The complaint states that after the sale, Ashley Johnson was employed by NavSav in a higher-level executive position, giving her access to confidential information and trade secrets, including information related to all of NavSav’s customer data. Her employment at NavSav ended on or around April 5, 2024, after which she began working for Insurance America. NavSav alleges that Ashley Johnson maintained access to the old Pointer Management System, which still contained client data that, according to the agreements, now exclusively belonged to NavSav, and continued to use this data for her own benefit and for Insurance America.
The complaint further alleges that both Johnsons, through their access to the Pointer Management System and NavSav’s other client data, continued to use NavSav’s trade secrets. NavSav claims that Insurance America was advised by NavSav that Ashley Johnson was using NavSav’s data to solicit customers for Insurance America, but allowed her to continue and benefited financially. The complaint also alleges that during Ashley Johnson’s employment at NavSav, the Johnsons added additional confidential information about other NavSav customers to the old Pointer Management System.
NavSav claims that a multitude of customers have canceled their policies with NavSav and notified the company that they are now insured through Insurance America, and alleges these departures are a direct result of the Johnsons’ use of confidential information in violation of the agreements. The complaint accuses the defendants of soliciting NavSav’s customers in violation of the Asset Purchase Contract, Bill of Sale and Assignment Agreement, Assignment of Goodwill, and Non-Competition Agreements. According to NavSav, these agreements required the Johnsons to deliver all active policyholder accounts and records, cooperate in obtaining necessary licenses, and refrain from using confidential information to solicit NavSav’s customers.
NavSav seeks preliminary and permanent injunctions to prevent further use of its data, as well as damages for breach of contract, misappropriation of trade secrets under both federal and Louisiana law, unfair trade practices, and conversion. The complaint does not discuss any specific insurance policy clauses; it focuses on contractual obligations and the alleged misuse of confidential business information.
It is important to note that these are allegations only. No facts have been proven in court, and no final decision has been made.
