Joe Gibbs Racing Sues Spire Motorsports in Data Theft Dispute

by Chief Editor

Joe Gibbs Racing Escalates Data Theft Lawsuit, Now Targets Spire Motorsports

Joe Gibbs Racing (JGR) has dramatically expanded its legal battle with former competition director Chris Gabehart, adding Spire Motorsports as a defendant. The lawsuit alleges a deliberate scheme by Gabehart to steal sensitive team data and utilize it to benefit his new employer, Spire. This development marks a significant escalation in what is becoming a high-profile dispute within the NASCAR Cup Series.

The Allegations: A ‘Brazen Scheme’ to Steal Trade Secrets

JGR initially sued Gabehart last week, claiming he violated his contract and misappropriated confidential trade secrets after his requests for increased authority were denied. The amended lawsuit now accuses Spire Motorsports of knowingly inducing Gabehart to breach his agreement with JGR. According to court filings, JGR believes Gabehart actively sought to acquire and transfer proprietary information before leaving the organization.

Specifically, JGR alleges Gabehart created a folder labeled “Spire” on his work computer and synced it with his personal Google Drive. The team likewise claims he photographed crucial setup information on his personal phone, intending to capture it with him to Spire. Evidence suggests Gabehart accessed JGR’s database even on the day he met with Spire Motorsports co-owner Jeff Dickerson.

Damages and Restraining Order Sought

JGR is seeking over $8 million in damages and is requesting a restraining order to prevent Gabehart from working at Spire Motorsports in a capacity similar to his previous role. The team also wants the court to compel Gabehart to return any remaining proprietary materials in his possession. JGR argues that the competitive landscape of the NextGen car era, where teams rely on minute setup details for an edge, makes the stolen information particularly valuable.

“Because all teams now race the same car and obtain car components from the same suppliers, understanding only a small portion of the details of how a competitor sets up its cars would allow other teams to extrapolate on that information and recreate a successful car setup,” the lawsuit states. “Car setup, analytics and race strategy have develop into increasingly important as competitive differentiators.”

Spire and Gabehart’s Response

Spire Motorsports confirmed hiring Gabehart as Chief Motorsports Officer over the weekend at Atlanta Motor Speedway. Gabehart has “emphatically denied” the allegations made by JGR. However, JGR contends that forensic evidence contradicts Gabehart’s claims, demonstrating he did take confidential information, including financial data he previously denied accessing.

JGR also stated that the forensic review did not exclude the possibility of files being sent via email, text message, or other file-sharing sites, despite Gabehart’s assertions.

Forensic Evidence Presented in Court

Supporting the lawsuit, JGR has submitted declarations from competition director Wally Brown, chief financial officer Tim Carmichael, and forensics expert Clark C. Walton. Walton’s report details Gabehart’s Google search history and observed activity related to syncing JGR data with his personal Google Drive account. The report also highlights access to JGR’s internal databases in the weeks leading up to his departure.

Walton’s analysis revealed searches and interactions with key JGR systems, including cloud-based analytics platforms and data sharing services.

What’s Next in the Legal Battle?

Both JGR and Spire Motorsports, along with Gabehart, have indicated they will vigorously defend their positions in court. Judge Matthew E. Orso will preside over the case in the Western District of North Carolina. The outcome of this lawsuit could have significant implications for data security and employee mobility within NASCAR, potentially setting a precedent for future disputes.

FAQ

Q: What is Joe Gibbs Racing alleging?
A: JGR alleges Chris Gabehart stole confidential data to benefit Spire Motorsports after being denied a promotion.

Q: What is Spire Motorsports’ role in the lawsuit?
A: JGR is now accusing Spire Motorsports of knowingly inducing Gabehart to breach his contract.

Q: What kind of data is at the center of the dispute?
A: The lawsuit focuses on proprietary car setup information, analytics, and race strategy data.

Q: What is JGR seeking from the court?
A: JGR is seeking over $8 million in damages and a restraining order preventing Gabehart from working at Spire.

Q: Has Gabehart responded to the allegations?
A: Gabehart has emphatically denied the allegations.

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