Ace Group says competitor OneBeacon and eight former Aceemployees conspired to steal trade secrets before their“coordinated resignations.”

In a lawsuit filed in U.S. District Court in EasternPennsylvania by Philadelphia-based Ace American Insurance Co.against OneBeacon U.S. Holdings, Ace claims its entire East Coastsurety department resigned during the afternoon of July 30 within aspan of about 15 minutes.

Each former Ace employee was hired to “largely or exclusively”comprise OneBeacon's surety department, alleges Ace.

But before they resigned, the eight employees named in thelawsuit, in coordination with OneBeacon, organized an “employeeraid to obtain and use Ace's trade secrets,” alleges Ace.

An examination of emails revealed a substantial amount wasdeleted by the employees before leaving for OneBeacon

The suit specifically highlights Chad A. Anderson, who was incharge of Ace's East Coast surety operations.Andersondid not meethis duty of loyalty to Ace and concealed the planned resignationsof his colleagues and himself, Ace charges.

“OneBeacon and the surety employees are now using Ace's tradesecrets to, among other things, solicit Ace clients,” reads thesuit.

Ace further alleges that its competitor's purpose was to“cripple or destroy” Ace's surety group on the East Coast, and itpaid the eight employees well above market value to do so.

Carmen Duarte, vice president, marketing and communications forOneBeacon, tells PC360, “We are confident that ultimately thecourts will find in our favor for the simple reason that OneBeaconand our new surety employees have done nothing wrong. We lookforward to building our new surety business going forward.”

OneBeacon on Sept. 7 announced the formation OneBeacon SuretyGroup, with Anderson as its president. The unit will focus oncommercial surety business targetting middle-market Fortune 2500companies in all 50 states as well as Puerto Rico, Canada andMexico, according to a statement.