Trading platform Nasdaq Private Market accuses its Vancouver-based rival Hiive in a lawsuit of stealing trade secrets and infringing its intellectual property rights.
The lawsuit, filed Tuesday in Manhattan federal court, adds new trade secret allegations to a previous patent dispute against Hiive. Hiive poached two employees, in part to gain access to confidential information about its operations, NPM reported.
“These claims are baseless and intended to intimidate, and we will vigorously defend ourselves,” Heif said in a statement. “We are proud that talented people have chosen to build their careers here, and our focus is on the customers we serve and the products we build.”
The dispute between the two largest so-called secondary market trading platforms comes as demand for stakes in private companies surges. A wave of technology companies – many of them tied to the artificial intelligence boom, such as OpenAI and Anthropic PBC – have grown rapidly without publicly selling stock, creating investor demand.
NPM, which was spun off from stock exchange operator Nasdaq about five years ago, said a former employee downloaded sensitive files including proprietary customer lists and contact information before moving to Hiive. The company said the employee recruited at least one NPM client. NPM also alleges that the employee downloaded NPM’s proprietary processes and methodologies used to conduct buy-side auctions and tender offers, including pricing algorithms and platform workflows.
NPM is asking the court for a three-month order banning the employee from working at Hiive.
Hiive recently held talks with investors about a secondary stock sale that would value the company at about $780 million and allow existing investors to cash out. Previously, the platform had its first financing last year, with a valuation of US$650 million.
Tuesday’s lawsuit also includes patent infringement claims made by NPM in an earlier lawsuit filed in federal court in Delaware. Hiive replicates its issuer dashboard and workflow tools to automate approval requests, document management, signature routing and settlement processes, according to NPM. NPM said the previous cases were being withdrawn.
Photo: Daniel Patrick Moynihan United States Courthouse, New York. Bloomberg photo.
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