IP Law Daily, TRADE SECRETS—E.D.N.Y.: Preliminary injunction granted in dispute between aftermarket wheel company and former employees, (Jan 16, 2026)

By Kevin M. Finson, J.D.

There was a showing of irreparable harm and likelihood of success on the merits as to trade secrets claims because the evidence showed former employees bound by nondisclosure agreements were giving confidential information to customers in attempts to obtain those customers’ business.

A seller of aftermarket tires was entitled to a preliminary injunction against several former employees and their new employer, the U.S. District Court in Central Islip has held. The injunction required that the defendants cease use of the seller’s confidential information, including product designs and pricing data, (Wheel Pros, LLC v. ASR Motorsport, LLC, No. 2:25-cv-00929-NJC-ARL, (E.D.N.Y. Jan. 14, 2026)).

Wheel Pros, LLC (Wheel Pros) was a seller of aftermarket wheels, performance tires, and accessories. ASR Motorsport, LLC (ASR) was a competitor of Wheel Pros. Nicholas Lanzello was a former employee of Wheel Pros and the current president of ASR. Wheel Pros brought suit against ASR, Lanzello, and several other former employees of Wheel Pros who now worked at ASR, alleging that they had violated the Defend Trade Secrets Act (DTSA), and breached nondisclosure, non-competition, and non-solicitation agreements by using confidential and trade secret information belonging to Wheel Pros in their employment at ASR. Wheel Pros sought a preliminary injunction. After noting that much of the relief sought by Wheel Pros, such as disgorgement of profits, was not available on a preliminary injunction, the court considered the traditional injunction factors.

Irreparable harm. Wheel Pros argued that it would suffer irreparable harm because the defendants would continue to disseminate its trade secrets and that it would suffer a loss of consumer goodwill. The court found that the record showed the individual defendants had already sent confidential information belonging to Wheel Pros to customers of Wheel Pros in order to poach business and that the evidence showed Lanzello’s involvement with ASR had prompted customers to stop doing business with Wheel Pros in favor of ASR. Both of these actions reflected harm that was not readily calculable and remedied by money damages.

Likelihood of success on the merits. The court found that Wheel Pros had made a strong showing of likelihood of success on the merits if its claims for misappropriation of trade secrets and breach of its employees’ nondisclosure and restrictive covenants. The claimed secrets were proprietary drawings of unreleased wheel designs, sales data, customer lists and customer-specific pricing schemes, which qualified as trade secrets and which Wheel Pros reasonably protected using nondisclosure agreements. The defendants did not contest that they violated their nondisclosure agreements by disclosing that information. Lanzello specifically was subject to a restrictive covenant that prohibited him from participating in a competing business or soliciting former employees, and it was undisputed that he had worked for ASR during the time covered by that covenant.

Balance of hardships and public interest. The court found the balance of hardships favored the issuance of an injunction slightly less sweeping than what was sought by Wheel Pros, not forcing ASR out of business entirely, but requiring that it stop use of Wheel Pros secrets. The injunction also was in the public interest because enforcement of contracts freely entered into by the parties was in the public interest.

Finding that all four factors supported issuance of a preliminary injunction, the court enjoined all of the defendants from use of Wheel Pros confidential information and required destruction of any such information in their possession. Lanzello was enjoined from participating in ASR or engaging other Wheel Pros employees, and the defendants were enjoined from selling any “developments” of work they had done at Wheel Pros.

The Case is No. 2:25-cv-00929-NJC-ARL.

Judge: Choudhury, N.

Attorneys: Katharine J. Liao (Squire Patton Boggs (US) LLP) for Wheel Pros, LLC. Martin Simon Krezalek (Blank Rome LLP) for ASR Motorsport, LLC.

Companies: Wheel Pros, LLC; ASR Motorsport, LLC

Cases: TradeSecrets TechnologyInternet NewYorkNews