Software provider sues former employee for Breach of Contract

New Bern Federal Courthouse
New Bern Federal Courthouse
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A recent legal battle has emerged involving a breach of contract and misappropriation of trade secrets. On January 20, 2026, KEV Group, Inc. filed a complaint in the United States District Court for the Eastern District of North Carolina against Alfreda Stephenson. The case highlights serious allegations regarding the misuse of confidential information by a former employee.

The plaintiff, KEV Group, Inc., is a Delaware corporation based in Wilmington, North Carolina, specializing in software services for school finance management. They allege that Alfreda Stephenson violated her contractual obligations after resigning from her position on November 26, 2025. According to KEV’s complaint, Stephenson executed a “Promotion Contract” with Technology Resources Associates, Inc., a subsidiary of KEV, which granted her access to sensitive company information under strict confidentiality agreements. However, before her departure from KEV to ostensibly spend more time with family, she allegedly downloaded over 600 files containing critical business data onto personal devices or cloud storage.

KEV claims that these actions were not only unauthorized but also suspicious given Stephenson’s stated reasons for leaving the company. Upon forensic examination of her computer activities post-resignation announcement, it was discovered that she accessed files irrelevant to her job role and beyond her professional purview. The lawsuit further accuses Stephenson of potentially collaborating with competitors such as Track Your Funds and Givebacks—entities that employ several former KEV employees and directly compete with KEV’s software offerings.

In response to these alleged breaches and potential competitive threats posed by Stephenson’s actions, KEV seeks multiple forms of judicial relief. They are requesting an injunction to prevent Stephenson from using or disclosing any confidential information obtained during her tenure at KEV. Additionally, they seek compensatory and punitive damages exceeding $75,000 for economic losses incurred due to these violations. The plaintiff also demands reimbursement for legal fees associated with enforcing the terms of their agreement and pursuing this litigation.

Representing KEV Group in this matter are attorneys Christopher M. Kelly from Gallivan White & Boyd P.A., along with J. Scott Humphrey and Katie M. Burnett from Benesch Friedlander Coplan & Aronoff LLP. The case is presided over by Judge Terrence W. Boyle under Case ID: 7:26-cv-00008-BO.

Source: 726cv00008_KEV_Group_Inc_v_Stephenson_Complaint_Eastern_District_North_Carolina.pdf



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