ACV says a former sales leader used confidential data to launch a rival and win business
A former sales executive is at the center of a federal lawsuit after allegedly taking trade secrets and customers to launch a competing business in South Carolina’s environmental services sector.
ACV Environmental Services, Inc., a New York corporation with headquarters in New Jersey and operations in Lexington, South Carolina, filed suit on November 10, 2025, against Michael Stuart and his newly formed company, Stuart Solutions LLC. The company alleges Stuart, who was promoted to Territory Sales Executive in July 2023, used his access to confidential customer lists, pricing, and business strategies to benefit his own startup.
According to court filings, Stuart began working for ACV on March 16, 2022, and was responsible for developing new sales and maintaining customer relationships in South Carolina. ACV states he was entrusted with sensitive information about customers, vendors, and the company’s approach to business in the competitive industrial cleanup and hazardous waste market.
The filings allege that Stuart formed Stuart Solutions LLC in January 2025, while still employed by ACV, and began competing against ACV before his resignation on April 16, 2025. ACV claims it lost an account worth approximately $11,000 a month after Stuart’s new company began servicing the customer. The company also points to a high six-figure project that moved from ACV to Stuart Solutions after Stuart’s departure.
The lawsuit describes a series of actions ACV says were meant to hide Stuart’s activities. On February 16, 2025, Stuart allegedly emailed a customer list from his ACV account to his personal Gmail account. Before returning his company-issued iPhone, he performed a factory reset, and just before handing back his laptop, he plugged in multiple external devices and accessed ACV’s Salesforce database and SharePoint site. ACV believes these actions were taken to transfer and conceal confidential business information.
The company further alleges that Stuart and Stuart Solutions used ACV’s Environmental Protection Agency manifest tracking and ID numbers, which ACV claims is a violation of federal law and regulations.
Central to ACV’s case is a Confidentiality, Non-Compete, and Non-Solicitation Agreement Stuart signed on March 7, 2022. ACV asserts that this agreement barred him from using company secrets or soliciting customers and employees for a defined period after his employment ended. The company alleges that Stuart’s actions breached these obligations and resulted in at least $100,000 in lost sales to date.
The case, filed in the United States District Court for the District of South Carolina, underscores the challenges HR professionals face when employees with access to sensitive company information move to competitors or start their own businesses. The outcome could influence how companies protect proprietary information and manage employee departures.
At this stage, these are allegations only, and no findings of fact have been made by the court. The dispute serves as a reminder for HR leaders about the importance of safeguarding confidential information and enforcing post-employment restrictions in today’s competitive business environment.
