Business Espionage: Fish Settlement Flounders

National Fish & Seafood and Kathleen A. Scanlon, the former employee the seafood processor is suing for allegedly stealing trade secrets for her new employer, had appeared to be heading for a settlement.

Now, not so much.

The Gloucester-based seafood processor last week amended its complaint against Scanlon, its former head of research and development and quality assurance, and her new employer, Tampa Bay Fisheries, by adding more defendants and more details of the alleged conspiracy and corporate theft.

The complaint accuses Scanlon of spending most of her final days at NFS feverishly downloading company trade secrets and emails onto two portable storage devices, video-recording the clam processing line and "granting Tampa Bay's IT director unauthorized access to NFS' computers through remote access software."

The filing includes screen grabs of text conversations from Scanlon's company-issued smart phone, including one from Scanlon to Paterson that read: "I am on my way will be there in 30 minutes. Feel like I need to go to confession. More like a hypocrite."

It also states that on July 10, Scanlon was observed on video surveillance and by other NFS employees "taking video and photographic recordings of the clam production process, including the machinery and ingredient-mixing processes used in producing NFS' clam products, including its Matlaw's Stuffed Clams."

The next day, according to NFS, Scanlon resigned after more than 20 years with the company. more