Intellectual Property vs Fair Competition in QSF World
Updated November 7, 2025
Last month, Flatirons Bank filed a lawsuit in Wyoming, alleging that a rival trust company has conducted a two-year campaign to obstruct its entry into the qualified settlement fund industry and lucrative business opportunities.
Flatirons alleged in its September 23, 2025 press release that the conduct of Eastern Point “is designed not to protect consumers, but to preserve EPTC’s complacent monopoly in the QSF market and stifle the very innovation and efficiency that competition is meant to foster. Flatirons’ entry into the marketplace represents lawful competition and technological advancement.”.
See Flatirons Bank v. Eastern Point Trust Company 2:25-cv-00222 U.S., District of Wyoming filed September 22, 2025 Supporting data: Qualified settlement funds are a deposit-rich niche involving big payouts for multi-claimant lawsuits.
Flatirons Bank Confronts Anticompetitive Conduct, Sets the Record Straight on Justice Escrow | Markets Insider September 23, 2025
Expert quote: The defendant, Eastern Point Trust Co., isn’t backing down. “Eastern Point expected this maneuver and is prepared to set the record straight in due time,” the company said in a statement.reported in Bank alleges rival tried to bar it from lucrative business | American Banker. September 24, 2025. Now they have.
Eastern Point Complaint Filed New Complaint Against Flatirons Bank, and Other Alleged Conspirators
Indeed, on October 16, 2025, Eastern Point Trust Company filed a new 91 page, 25 Count Complaint complaint 18 U.S.C. § 1836 (b) – Civil Action to Protect Trade Secrets in the United States District Court Eastern District of Virginia, Alexandria Division (which is affectionately known in some quarters as ” The Rocket Docket“) against Flatirons Bank, Jakob Z. Norman, Nicholas J. Coccimiglio, William Bunnell, Michael Upchurch, Courtney Barber, Timothy Krochuk, Trial Lawyers for Justice, Justice for Life, FBHC Software LLC, Trellis Software LLC, Town of Glenrock, WY, Bruce Roumell, Amy Iberlin and John Does.
Case Caption: Eastern Point Trust Company vs. Flatirons Bank, Jakob Z Norman, Nicholas J Coccimiglio, William Bunnell, Michael Upchurch, Courtney Barber, Timothy Krochuk, Trial Lawyers for Justice, Justice for Life, FBHC Software LLC, Trellis Software, Inc., Town of Glenrock, WY, Bruce Roumell, Amy Iberlin and John Does 1:2025cv01787 U.S. District Court for the Eastern District of Virginia
New October 16, 2025 Eastern Point Complaint v Flatirons et al was not unexpected.
On May 29, 2025, an Eastern Point press release read that “The case against Flatirons Bank and its cohorts in the joint venture operating as Justice Escrow grows stronger by the day. Documents recently produced by certain governmental entities provide clear evidence that the Justice Escrow QSF platform is nothing more than Eastern Point Trust Company’s QSF 360 platform by another name.
Dycio & Biggs Attorneys at Law telegraphed, on May 29, 2025, the intention to file a new complaint against Flatirons Bank and the other Justice Escrow defendants based on this newly acquired information. The ensuing complaint will largely mirror the allegations in the prior complaint, while also materially expanding the named defendants and increasing the damages claims. Necessarily, the original action was dismissed voluntarily, and not as a result of any court ruling, and in no way prejudices Eastern Point Trust Company from proceeding against the defendants in the forthcoming action, which shall take precedence over the prior proceedings”.
Evidence that “Justice Escrow QSF platform no more than Eastern Point Trust Co. QSF 360 platform by Another Name” – Structured Settlements 4Real® Blog 2025 May 29, 2025
Once again, Eastern Point Trust Co. through its attorneys, announced in a press release on May 29, 2025, referenced herein and in the aforementioned May 29, 2025, linked blog post, that it would be refiling and outlined the reasons for doing so. The process exceeded the anticipated timeline, with details provided in the Affidavit of Sam Kott, which was attached to EPTC’s November 4, 2025, Motion to Dismiss in response to the Flatirons complaint dated September 22, 2025. The Kott affidavit offered a thorough explanation for the five-month delay in refiling. For more detailed review of Kott’s Affidavit please refer to EPTC Motion to Dismiss Flatirons Complaint – Structured Settlements 4Real® Blog 2025 November 4, 2025, where you will find a summary at the end of that post.
Why Should You Follow This Case?
This case requires careful consideration due to its complex nature. It goes beyond the intellectual property or unfair competition concerns of the parties and should also be analyzed through the lens of best practices for Qualified Settlement Funds (QSFs). Key factors include compliance with IRC 468B, ongoing jurisdiction, and the potential implications in a Dillon’s Rule state, as well as the issue of retroactive requalification of a QSF or multiple QSFs after the termination of continuing jurisdiction under 468B. Settlement planners, their clients with structured intentions, structured settlement annuity issuers, and qualified assignment companies need to remain vigilant about these matters.
Introduction to the Case
Eastern Point’s Complaint alleges a conspiracy by multiple defendants to unfairly compete with Eastern Point Trust Company by misappropriating its trade secrets.
- Eastern Point Trust Company is a leader in the qualified settlement fund (QSF) industry.
- The defendants allegedly copied and disclosed Eastern Point’s trade secrets and confidential information.
- The QSF 360™ Platform, developed by Eastern Point, is a comprehensive online solution for QSF creation and administration.
- The lawsuit aims to protect Eastern Point’s rights and innovations from ongoing damage caused by the defendants’ actions.
What is the Defend Trade Secrets Act (of 2016)?
According to a Summary from the American Bar Association Business Law Section,.
- DTSA gives American companies the opportunity to protect against and remedy misappropriation of important proprietary information in federal court.
- The DTSA’s broad definition of trade secret, together with the prophylactic provisions of the statute, provides a robust additional tool to prevent unauthorized disclosure of proprietary information.
- Although open questions remain about the breadth of this statute, it seems clear that this new law will provide an additional avenue for companies to protect intellectual property, thus providing enhanced value to shareholders.
Read More about the Defense Trade Secrets Act (of 2016) Explaining the Defend Trade Secrets Act
Jurisdiction and Venue
The court has jurisdiction over the case based on diversity of citizenship and federal law.
- Original jurisdiction under 28 U.S.C. § 1332 due to diversity of citizenship and amount in controversy exceeding $75,000.
- Additional jurisdiction under 28 U.S.C. § 1331 for claims arising under federal laws, including the Defend Trade Secrets Act and RICO.
- Venue is proper in Virginia as a substantial part of the events occurred there.
Development of the QSF 360™ Platform
In the Complaint, Eastern Point alleges it has invested significantly in developing its innovative QSF 360™ Platform.
- The platform allows for rapid establishment and administration of QSFs, enhancing efficiency and compliance.
- Eastern Point serves over 20,000 clients globally and manages over $20 billion in trust assets.
- The QSF 360™ Platform was developed through years of research and financial investment.
Features and Trade Secrets of the QSF 360™ Platform
In the Complaint, Eastern Point allehes that The QSF 360™ Platform includes unique features that provide Eastern Point with a competitive advantage.
- It offers a feature-rich user interface with dynamic workflows and online intake processes.
- Proprietary documentation templates ensure compliance and operational efficiency.
- The platform includes specialized features like real-time updates and customizable reports.
Security Measures for Trade Secrets
Eastern Point alleges in the Complaint that it employs various measures to protect its trade secrets related to the QSF 360™ Platform.
- Technical and physical security measures include encrypted access and secure storage of sensitive information.
- Contractual protections are in place, including confidentiality agreements for employees and users.
- Access to the platform is contingent upon users agreeing to strict Terms of Use that restrict disclosure and use of trade secrets.
Misappropriation of Intellectual Property and Trade Secrets
The Complaint outlines the definition and implications of misappropriating Eastern Point’s intellectual property and trade secrets.
- Misappropriation includes acquiring or disclosing trade secrets without consent.
- “Improper means” defined as theft, fraud, bribery, or breach of confidentiality.
- Actual knowledge of misappropriation does not affect liability.
- Parties have a duty to prevent unauthorized acquisition or disclosure.
Definition of Platform and Services
The Complaint defines the scope of Eastern Point’s Platform and Services.
- Includes the website http://www.easternpointtrust.com and affiliated sites.
- Encompasses all related services such as fiduciary, technology, and administration.
- Documentation received from Eastern Point is also included.
Relevant Businesses and Trade Secrets
The Complaint describes the businesses associated with Eastern Point and the nature of its trade secrets.
- Relevant Businesses refer to any commercial activities where users gain access to confidential information.
- Trade Secrets encompass all non-public information that provides economic value.
- Includes technical, business, customer information, and internal reports.
Non-Compete and Non-Disclosure Provisions
The Complaint details the contractual obligations of users regarding competition and confidentiality such as.
- Users acknowledge the unique nature of Eastern Point’s business and its confidential information.
- Users are restricted from engaging in competitive activities for 60 months post-termination.
- Prohibitions include disclosing confidential information to competitors.
Industrial Espionage and Protection of Intellectual Property
The Complaint emphasizes the prohibition of unauthorized use and disclosure of Eastern Point’s proprietary information.
- Parties must not engage in industrial espionage or unauthorized replication of intellectual property.
- Violations include reverse engineering or claiming ownership of Eastern Point’s trade secrets.
QSF Agreements and Incorporation of Terms
The Complaint explains how the QSF Agreements bind parties to the Terms of Use.
- Trust Agreements incorporate Terms of Use by reference.
- Trust Administration Agreements also include similar incorporation provisions.
- Petitions for Distribution require adherence to the Terms of Use.
JE Escrow Conspiracy and Competitive Actions
The Complaint describes the alleged actions of the JE Conspirators, defined in the Complaint, at 118 as ‘the combination of Norman, Coccimiglio, Bunnell, Upchurch, Barber, Flatirons, Krochuk, Trellis, the Town of Glenrock, Mayor Roumell, Iberlin, and John Does (collectively, the “JE Conspirators”)’, in competing with Eastern Point.
- Justice Escrow is a competing platform derived from Eastern Point’s QSF 360™ Platform.
- JE Conspirators include various individuals and entities acting to undermine Eastern Point.
- Misappropriation of trade secrets occurred through clandestine efforts.
Settlement Conspirators’ Breaches of Contract
The Complaint alleges the breaches of contract by the Settlement Conspirators (defined in 118A of the Complaint as ‘Norman, Coccimiglio, Bunnell, and Upchurch (the “Settlement Conspirators”)’:
- Each conspirator assented to the Terms of Use multiple times.
- Breaches include engaging in competitive activities and disclosing confidential information.
- Each conspirator’s actions resulted in significant harm to Eastern Point.
Alleged Harm to Eastern Point from Justice Escrow Conspiracy
The Complaint alleges ongoing harm caused to Eastern Point by the JE Conspiracy.
- Nearly 200 QSFs established through Justice Escrow.
- Eastern Point has suffered lost revenue, diminished market share, and reputational damage.
- Settlement Conspirators have engaged in efforts to malign Eastern Point’s reputation.
Legal Counts Against Conspirators
The text presents legal counts for breach of contract against specific individuals.
- Counts include breaches by Norman, Coccimiglio, Bunnell, and Upchurch.
- Each count details the creation of accounts, acceptance of Terms of Use, and specific breaches.
- Eastern Point seeks injunctive relief and damages for ongoing violations.
Alleged Breaches of Contract by Upchurch
It is alleged in the Complaint that Upchurch engaged in multiple breaches of contract with Eastern Point, violating terms related to non-compete, non-disclosure, and trade secrets.
- Upchurch established QSFs at Eastern Point’s direction and electronically executed the Terms of Use.
- He breached the Non-Compete and Non-Disclosure provision by competing with Eastern Point and disclosing confidential information.
- Upchurch misappropriated trade secrets by accessing the QSF 360™ Platform for competitive purposes.
- He engaged in unauthorized surveillance and use of Eastern Point’s Industrial Property.
- Eastern Point claims ongoing damages due to Upchurch’s breaches and seeks injunctive relief and disgorgement of profits.
Alleged Breaches of Contract by Trial Lawyers for Justice
It is alleged in the Complaint that Trial Lawyers for Justice violated contractual obligations with Eastern Point, leading to claims of competitive activity and misuse of trade secrets.
- The firm created an account on the QSF 360™ Platform and agreed to the Terms of Use multiple times.
- Agents logged into the account over 454 occasions, reaffirming their agreement to the Terms of Use. [ Complaint at 317]
- They breached the Non-Compete and Non-Disclosure provision by engaging in competitive activities and disclosing confidential information.
- The firm misappropriated trade secrets and exceeded the scope of the Limited Use License.
- Eastern Point seeks damages and injunctive relief due to ongoing breaches.
Alleged Breaches of Contract by Justice for Life
Justice for Life is alleged to have breached its contractual obligations with Eastern Point through competitive actions and misuse of trade secrets.
- The organization created an account on the QSF 360™ Platform and agreed to the Terms of Use multiple times.
- Agents logged into the account on at least 4,934 occasions through May 28, 2025, reaffirming their agreement to the Terms of Use. [Complaint at 332]
- They breached the Non-Compete and Non-Disclosure provision by engaging in competitive activities and disclosing confidential information.
- Justice for Life misappropriated trade secrets and exceeded the scope of the Limited Use License.
- Eastern Point claims ongoing damages and seeks injunctive relief.
Alleged Violations of the Defend Trade Secrets Act
Eastern Point alleges that multiple defendants misappropriated its trade secrets, violating the Defend Trade Secrets Act.
- Eastern Point owns trade secrets related to the QSF 360™ Platform and proprietary methods.
- Defendants acquired and used these trade secrets without authorization.
- The Settlement Conspirators breached their duty to maintain secrecy by misappropriating trade secrets for a competing platform.
- Eastern Point has taken reasonable measures to protect its trade secrets, which are confidential and derive economic value.
- The misappropriation has caused damages, and Eastern Point seeks injunctive relief.
Violations of the Virginia Uniform Trade Secrets Act
The Complaint includes allegations of misappropriation of trade secrets under the Virginia Uniform Trade Secrets Act.
- Eastern Point possesses confidential information and trade secrets related to its business.
- Defendants acquired and used these trade secrets without authorization.
- The Settlement Conspirators breached their duty to maintain secrecy by misappropriating trade secrets for a competing platform.
- Eastern Point has taken reasonable measures to protect its trade secrets, which are confidential and derive economic value.
- The misappropriation has caused damages, and Eastern Point seeks injunctive relief.
Violations of the Virginia Computer Crimes Act
Eastern Point claims that the Settlement Conspirators violated the Virginia Computer Crimes Act through unauthorized access and fraud.
- The Settlement Conspirators engaged in multiple acts of Computer Fraud by accessing Eastern Point’s network without authority.
- They also committed Computer Trespass by making unauthorized copies of data from Eastern Point’s network.
- Eastern Point has sustained damages as a direct result of these violations.
Violations of the Computer Fraud and Abuse Act
The complaint alleges violations of the Computer Fraud and Abuse Act by the Settlement Conspirators.
- Eastern Point’s QSF 360™ Platform is housed on a secured network in Virginia.
- The Settlement Conspirators accessed the platform without authority, intending to misappropriate trade secrets.
- They made false representations to maintain access to the platform while planning to steal trade secrets.
- Eastern Point has incurred significant costs due to these violations, resulting in damages.
Violations of the RICO Act
Eastern Point alleges violations of the RICO Act by multiple defendants through a pattern of racketeering activity.
- The defendants engaged in a pattern of racketeering activity by committing acts indictable under federal law.
- Each defendant is considered a “person” under the RICO Act, and the enterprise is engaged in interstate commerce.
- The defendants’ actions include stealing trade secrets and conducting financial transactions involving proceeds from unlawful activity.
- Eastern Point has sustained damages as a result of these violations.
Conspiracy to Injure a Business
Eastern Point alleges in the Complaint that the JE Conspirators conspired to injure its business through malicious actions.
- The JE Conspirators combined efforts to willfully and maliciously harm Eastern Point’s reputation and business.
- Specific actions taken by the conspirators are detailed in prior allegations.
- Eastern Point has sustained damages as a result of this conspiracy.
Common Law Conspiracy
The Complaint includes the following allegations of common law conspiracy against the JE Conspirators.
- The JE Conspirators acted together to obtain an unfair business advantage over Eastern Point.
- Their actions involved criminal or unlawful means to inflict injury on Eastern Point.
- Eastern Point has sustained damages due to the actions committed in furtherance of the conspiracy.
What Are the Damages/Relief Sought by Eastern Point?
The Complaint states that Eastern Point seeks extensive damages and remedies from the defendants for their alleged wrongful conduct.
- The company requests $3,500,000 in damages, with ongoing damages estimated at $500,000 per month.
- Specific damages include $1,000,000 per breach of trade secret provisions and
- $5,000,000 per breach of industrial espionage and industrial property provisions.
- One hundred fifty million U.S. Dollars ($150,000,000) to replace ongoing loss of Eastern Point’s unique market position and market segments position as an innovation, thought, and compliance leader
- Fifty million U.S. Dollars ($50,000,000) to replace future and ongoing loss of competitive advantage and business scale;
- One hundred million U.S. Dollars ($100,000,000) to replace future and ongoing general market penetration diminution, marketplace position erosion;
- Ten million U.S. Dollars ($10,000,000) to replace future and ongoing productivity reductions due to foregone employee income opportunities resulting from loss of current and future customer base, marketplace erosion, and revenue opportunities;
- Eastern Point seeks permanent injunctive relief, disgorgement of profits, and various forms of damages under multiple statutes.
- Eastern Point requests reasonable attorney’s fees and costs associated with the legal proceedings.
Press Reports
Town included in $320 million-plus lawsuit: EPTC files suit for allegedly stealing QSF platform trade secrets, conspiracy | Glenrock Independent October 21, 2025
$350M Lawsuit Over Banking Trade Secrets Names Town Of Glenrock And Mayor | Cowboy State Daily October 28, 2025 [Cowboy State Daily claims to be “Wyoming’s most trusted, comprehensive news source from the state’s largest, most experienced stable of journalists” on its website]
Last updated November 7, 2025
