The Australian arm of derivatives trading firm Optiver is suing Tibra, a rival outfit set up by a former employee, for allegedly stealing software, according to local press reports.
Optiver has launched action in the Federal Court, suing Tibra Trading as well as seven members of its staff, says the Australian newspaper.
Optiver claims its former trader, Dinesh Bhandari used its confidential information for Tibra's computer trading programs when he set up the firm in January 2006.
Several other employees who left and joined Bhandari at Tibra, also had access to confidential information that is being used by the new firm, it is alleged.
Optiver launched the action after private investigators tracked e-mails sent by traders and IT employees on the day they left the company, says the Australian.
The firm is suing for copyright infringement and is asking for additional damages, saying Tibra "flagrantly" and "recklessly" used its software. In addition, it is claiming a proportion of the profits made by Tibra since it began trading.
Optiver claims rival Tibra stole software - The Australian