Littler Mendelson recently informed a Texas court that they are dropping the lawsuit against a former associate, Uliana Kozeychuk, who was accused of uploading confidential documents to her personal Dropbox account. The firm decided to dismiss the lawsuit after reaching a settlement of $950,000 with Kozeychuk in December, as reported by Law360.

The dispute began when Littler alleged that Kozeychuk had transferred over 7,900 documents, including client information and firm-owned materials, to an external Dropbox before leaving her position in February 2023. In response, Kozeychuk claimed that she was unfairly targeted for raising concerns about a shareholder and stated that the documents she took were of a personal nature.

As part of the settlement agreement, Littler agreed to pay Kozeychuk $950,000 to cover back pay, alleged emotional distress, attorney fees, and other costs under certain conditions. These conditions include Kozeychuk removing any references to the firm from her social media accounts and allowing a forensics expert to delete any firm documents from her electronic files.

Although Littler’s notice of dismissal did not explicitly mention the settlement, details of the agreement were found in a separate case docket in a California state court. In response to Kozeychuk’s accusation of breaching the settlement terms, Littler has denied any wrongdoing, stating that they believe all issues between the parties have been resolved in accordance with the agreement.

When contacted for comment, Kozeychuk declined to provide a statement to the ABA Journal, while a lawyer representing Littler did not immediately respond to inquiries.

The resolution of this legal dispute highlights the importance of confidentiality and data security within law firms, emphasizing the need for clear policies and procedures regarding document handling and employee conduct. It also serves as a reminder of the potential consequences of breaching such protocols and the significance of reaching amicable settlements to avoid prolonged litigation processes.