Court Denies Ex Parte TRO in Sunbit Trade Secret Dispute Over Phone Imaging Spoliation Fears

Sunbit filed suit on April 20, 2026, alleging that Keil misappropriated trade secrets after returning to Synchrony Financial and its subsidiary CareCredit. The complaint claims Keil had access to confidential merchant lists, pricing data, and sales strategies during her tenure at Sunbit from October 2022 to February 2026.

Sunbit sought a broad TRO enjoining the defendants from using, copying, or disclosing trade secrets and preventing Keil’s employment in a competitive role. However, Sunbit specifically argued that an ex parte order was necessary to prevent the immediate spoliation of evidence on Keil’s personal phone. The company alleged that Synchrony counsel had indicated plans to proceed with imaging the device without Sunbit’s agreement on search protocols, creating a risk that confidential data could be deleted or altered.

The court denied the ex parte TRO, holding that Sunbit did not establish that irreparable harm would result if defendants were given notice of the motion. The judge noted that Synchrony had already temporarily suspended Keil from working and was on notice of its duty to preserve evidence since receiving a cease-and-desist letter in March 2026. The court emphasized that while Sunbit’s proffer explained why the motion was time-sensitive, it did not justify granting relief without giving the defendants an opportunity to be heard.

The court denied Sunbit’s request for a temporary restraining order but left its motion for a preliminary injunction pending. The court will rule on the preliminary injunction request after briefing concludes and, if necessary, an evidentiary hearing.

Sunbit is directed to serve the defendants with the summons, complaint, and supporting papers by April 23, 2026. Defendants must respond to the preliminary injunction motion no later than April 30, 2026.

The court also took Sunbit’s separate motion for expedited discovery under advisement, with responses due by May 1, 2026. All parties must inform the court by May 4, 2026, whether an evidentiary hearing is needed for the preliminary injunction motion.