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Securities law

Benefitfocus, Inc. Responds to Restrictive Covenant Dispute

Strategic Insights

— 1 min read

Benefitfocus, Inc. has responded to a complaint filed by its President and Chief Executive Officer, Matthew Levin's, former employer, ADP, Inc. The dispute revolves around restrictive covenant agreements Mr. Levin had previously entered into with ADP. On May 25, 2021, the United States District Court for the District of New Jersey denied ADP's application for a temporary restraining order and preliminary injunction, allowing Mr. Levin to continue his employment with Benefitfocus, Inc. The litigation between ADP and Mr. Levin remains ongoing, with the company standing firm in its belief that ADP's claims are without merit.

Key Takeaways:

  • Benefitfocus, Inc. has filed a FORM 8-K (Current Report) with the Securities and Exchange Commission on May 27, 2021, in response to the ongoing litigation.
  • Matthew Levin, President and Chief Executive Officer of Benefitfocus, Inc., is at the center of the dispute due to restrictive covenant agreements with his former employer, ADP, Inc.
  • ADP filed a complaint alleging that Mr. Levin's employment with Benefitfocus, Inc. violates the aforementioned agreements, prompting an application for a temporary restraining order and preliminary injunction on May 5, 2021.
  • The United States District Court for the District of New Jersey denied ADP's application on May 25, 2021, allowing Mr. Levin to continue his employment.
  • Benefitfocus, Inc. asserts that ADP's claims are without merit and that Mr. Levin will vigorously defend himself against these actions.
  • The litigation between ADP and Mr. Levin continues, with no resolution in sight.

Statistics:

  • May 3, 2021: The date on which a complaint was filed against Matthew Levin by ADP, Inc.
  • May 5, 2021: The day on which ADP filed an application for a temporary restraining order and preliminary injunction.
  • May 25, 2021: The date of the hearing in which the United States District Court for the District of New Jersey denied ADP's application for a temporary restraining order and preliminary injunction.
  • 100 Benefitfocus Way: The address of the principal executive offices of Benefitfocus, Inc.
  • (843) 849-7476: The telephone number of Benefitfocus, Inc.

Sources:

  • UNITED STATES SECURITIES AND EXCHANGE COMMISSION Form 8-K Current Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 (Date of Report: May 25, 2021)

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