Trading platform Nasdaq Private Market alleged that its Vancouver-based competitor Hiive has stolen trade secrets and infringed on its intellectual property in a lawsuit.
The suit, filed Tuesday in Manhattan federal court, adds new allegations of trade secrets to a previous patent dispute against Hiive. According to NPM, Hiive poached two of its staff in part to access confidential information about its operations.
“These claims are without merit and designed to intimidate, and we’ll defend ourselves vigorously,” Hiive said in a statement. “We’re proud that talented people choose to build their careers here, and our focus is on the clients we serve and the product we’ve built.”
The dispute between two of the largest platforms for so-called secondary market trades comes as demand for holdings in privately held companies booms. A wave of technology companies — many associated with the artificial intelligence boom, such as OpenAI and Anthropic PBC — have grown rapidly without selling shares publicly, creating investor demand.
NPM, which was spun out of stock exchange operator Nasdaq Inc. about five years ago, said a former employee had downloaded sensitive documents before moving to Hiive, including proprietary client lists and contact information. The employee solicited at least one NPM client, the company said. NPM also claims the employee downloaded the proprietary processes and methodologies that NPM uses to conduct buy-side auctions and tender offers, including pricing algorithms and platform workflows.
NPM is asking the court for a three-month order blocking the employee from working at Hiive.
Hiive has recently held talks with investors about a secondary stock sale valuing the company at about $780 million, allowing existing investors to cash out. That comes after a primary capital raise last year that valued the platform at $650 million.
Tuesday’s complaint also includes patent infringement allegations NPM made in an earlier suit filed in Delaware federal court. According to NPM, Hiive copied its issuer dashboards and work-flow tools that automate approval requests, document management, signature routing, and settlement processes. NPM said the earlier case is being withdrawn.
Photo: The Daniel Patrick Moynihan United States Courthouse in New York. Bloomberg photo.
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