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Datto Files Lawsuit Against Former Employee


Datto has filed suit against a former employee, alleging that the worker took Datto trade secrets and confidential information to use while working for a rival in the MSP-focused technology market. The rival is not party to the lawsuit.

The former Datto employee, Daniel Moore, worked for the data protection and IT management software provider from November 2018 through July 2020. His focus at Datto was director and head of commercial operations for APAC and EMEA, according to Moore's LinkedIn bio. He joined ConnectWise as VP of sales operations in September 2020, according to his LinkedIn bio.

Datto filed suit against Moore, alleging "unlawful misappropriation of Datto’s valuable trade secrets and other confidential information to use at a direct competitor, ConnectWise LLC, and to unlawfully gain a competitive advantage in the marketplace.”

To the best of ChannelE2E's knowledge, Datto's legal case focuses on Moore and not ConnectWise. Datto declined further comment, noting that the litigation is pending. ChannelE2E has reached out to Moore for comment, and we will update this article if/when additional information about the case surfaces.

ConnectWise Comment: Meanwhile, ConnectWise CEO Jason Magee offered this comment to ChannelE2E, noting that the company is not party to the case and is now investigating the situation:

"On Monday evening, ConnectWise learned of a lawsuit filed by Datto against a former UK based Datto employee who was recently hired by ConnectWise in the U.S. The employee was laid off by Datto in July and returned to the U.S. and started with ConnectWise on September 1.  The lawsuit is between Datto and their former employee.

Although ConnectWise is mentioned, we are not a party to the litigation.

Based on some of the claims, which ConnectWise takes very seriously, we have taken the following immediate actions:

  • We have made contact with the attorneys representing Datto.
  • The employee has been placed on paid leave while ConnectWise conducts a thoughtful and fair investigation into the allegations.
  • After it has concluded its investigation, ConnectWise will make a well-informed and balanced decision as to its next steps, taking into account all of the information ConnectWise’s investigation uncovers.

ConnectWise strongly rejects any insinuation or claims that ConnectWise engaged in any inappropriate conduct. At no time was ConnectWise aware of or knowingly in possession of any confidential or proprietary information belonging to Datto."

Datto and ConnectWise compete in the MSP-focused technology market. Both companies offer PSA (professional services automation), RMM (remote monitoring and management), BDR (backup and disaster recovery) and additional tools for managed IT services providers that support small business customers.

Joe Panettieri

Joe Panettieri is co-founder & editorial director of MSSP Alert and ChannelE2E, the two leading news & analysis sites for managed service providers in the cybersecurity market.