Overview

• Scale filed the case in the U.S. District Court for the Northern District of California, naming former sales manager Eugene Ling and competitor Mercor.
• The complaint claims Ling took more than 100 internal documents tied to customer strategies, including materials for a major client identified only as “Customer A.”
• Scale alleges Ling downloaded many files the day after meeting Mercor’s CEO, pitched Mercor to the key customer while still at Scale, and sought to recruit Scale colleagues.
• The company seeks damages, legal costs, an injunction blocking any use of its information, and the return of all documents it says were taken.
• Mercor says it has not accessed any Scale data, is investigating Ling’s personal-drive files, and offered to have them destroyed, while Ling publicly apologized and denied nefarious intent.