(Bloomberg) Express Scripts Inc. sued its accounting firm, Ernst & Young LLP, and one of its partners for the alleged theft of trade secrets and misappropriation of the pharmacy benefit manager’s confidential and proprietary data.
The Express Scripts Holding Co. unit said in a complaint filed last week in state court in Clayton, Missouri, that it learned last year that accounting firm partner Don Gravlin had been “sneaking” into its St. Louis headquarters and e-mailing documents to a private Google account via the account of an Ernst & Young consultant.
“E&Y and Gravlin were possessed with an evil motive,” the benefits manager said in its complaint. The company is seeking punitive damages to deter future similar conduct by Ernst & Young and other accounting firms.
The accountants allegedly took the equivalent of more than 20,000 pages of data, including pricing information, business strategy, projections and “performance metrics” documents, to aid development of Ernst & Young’s own health-care business segment, which includes Express Scripts and Medco Health Solutions Inc., which it acquired last year, as well as some of their competitors.
“When we were notified about this matter several months ago, we immediately conducted an investigation and concluded there was a violation of EY policies and the company’s policies,” Amy Call Well, an Ernst & Young spokeswoman, said in an e-mailed statement.
“The individual at the center of these allegations is no longer with the firm,” she said.
Gravlin, whom the complaint identifies as living in the St. Louis suburb of Caseyville, Illinois, didn’t immediately respond to a voice-mail message seeking comment on the lawsuit.
Trade-Secret Law
Claiming the firm and Gravlin violated Missouri computer- tampering and trade-secret protection laws, Express Scripts seeks unspecified money damages plus a court order barring Ernst & Young from the use or disclosure of any of the information it allegedly misappropriated.
Call Well said the firm, a New York-based unit of London- based Ernst & Young International, is unaware of any instance in which the information was used for any purpose by the accounting firm or its personnel.
“We will vigorously contest the claims in the complaint,” she said.
The case is Express Scripts Inc. v. Ernst & Young LLP, 13SL-CC00537, St. Louis County, Missouri, Circuit Court, Division 20 (Clayton).











1 Comment
I find this action by another of the premiere accounting firms to be disgusting. And it seems to be occurring with greater regularity. Tax partners indicted for tax fraud; auditors being sued for gross negligence (or maybe just plain stupidity); now a partner stealing from a client; what's next?
I know there are mistakes made since none of us is perfect, and scum still can slide through in suits and become clients or worse yet, employees and partners, but some of this stuff is just out of bounds.
This goes quite far back, but when ZZZ Best fraud was also pulled on Ernst & Ernst, I thought that would serve as a wake up call at what level some would go to completely fool the auditors, but apparently hasn't.
It's now expanded to running tax scams on the government and stealing from clients... Keep it up folks and the next step will be government auditing of all public companies, which would be a complete disaster for our capital markets.
Posted by: topbeancounter | February 25, 2013 11:43 AM
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