The Business Review (Albany) - by Adam Sichko

The Capital District Physicians' Health Plan Inc. has sued a former employee for $10 million, alleging that he stole company secrets and gave them to his new employer, a rival health insurer.

A hearing is set for Sept. 24 for Thomas Ryan, former director of underwriting at CDPHP, to challenge a temporary restraining order that CDPHP obtained against him. The order prevents Ryan from doing work for his new employer, MVP Health Care Inc., until he proves that he did not distribute any proprietary information or trade secrets to MVP or other competitors.

MVP is CDPHP's largest competitor.

CDPHP sued Ryan last month in state Supreme Court in Saratoga County. Earlier this week, the case was moved to U.S. District Court in Albany, N.Y.

As CDPHP's top underwriter, Ryan would have had access to claims data that insurance carriers use to set premium rates for their policies. In its lawsuit, CDPHP contends that such data, if distributed to a competitor, could be used to undercut CDPHP's rates.