Donnellon McCarthy Enterprises has taken legal action against DEX Imaging and three former employees of Ohio Business Machines, alleging breach of contract, misuse of trade secrets, and unfair competition. The case highlights a growing trend in the sector.
Donnellon McCarthy Enterprises (DME), which acquired Ohio Business Machines (OBM) in December 2024, has filed a federal lawsuit against DEX Imaging and three former OBM employees, alleging breach of contract, misuse of confidential information, and violations of federal and state trade secret laws.
The complaint, filed on 8 July in the Northern District of Ohio, names DEX Imaging and former OBM sales staff Anthony Haddad, Dax Bushmeyer and Mathew Utter as defendants. DME alleges the three individuals left OBM and joined DEX Imaging while still under contractual non-compete and non-solicitation obligations.
DME claims the defendants retained and used OBM’s confidential customer, pricing and bid information to win business for DEX Imaging. The lawsuit says DEX Imaging “knowingly permitted” the use of OBM’s confidential materials and benefitted from the breach by undercutting OBM’s customer proposals.
The suit lists ten causes of action, including violations of the federal Defend Trade Secrets Act (DTSA), the Lanham Act, the Ohio Uniform Trade Secrets Act (OUTSA), and the Ohio Deceptive Trade Practices Act. DME also alleges breach of contract, tortious interference with customer and employee relationships, and unjust enrichment.
All three former employees had signed non-compete, non-solicitation and confidentiality agreements during their time with OBM, with restrictions lasting twelve months after leaving the company and applying to a defined geographic area. The complaint claims those agreements were still in force when the individuals joined DEX Imaging.
According to the filing, DME sent cease-and-desist notices to each of the former employees and to DEX Imaging on multiple occasions, including as recently as May 2025. Despite this, DME says the defendants continued to use or share confidential information, solicit OBM customers, and make “misleading and disparaging statements” about OBM and its services.
DME is seeking injunctive relief to bar the former employees from working for DEX Imaging within the restricted geographic zones, and to prevent the use or disclosure of any OBM or DME confidential materials. The company is also seeking damages in excess of $75,000 (approx. €69,000), including compensatory, treble, and punitive damages, along with attorney fees.
The Recycler reported in June 2025 that DEX Imaging had filed suit against Impact Networking, alleging unfair competition and poaching of former employees. In both cases, restrictive covenants and access to confidential business data are at the centre of the dispute.
In this latest filing, DME alleges that DEX Imaging hired the employees while their non-compete agreements were active and did so with full knowledge of their contractual restrictions. “There is no lawful justification for DEX’s tortious interference,” the complaint states.
At the time of writing, DEX Imaging had not responded to the claims. The case is expected to proceed to jury trial unless settled.
