Indiana University professor, former student sued for $2B

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An Indiana University Kelly School of Business professor, five former Kelley students and a corporate competitor are being sued for approximately $2 billion.

The lawsuit comes from Indianapolis-based business owners Tim and Doris Anne Sadler, who claim that a Kelley Master of Business Administration (MBA) class intended to consult with the Sadlers on a business venture instead violated a nondisclosure agreement (NDA) and helped a competitor steals their idea.

What is the $2 billion Kelley School lawsuit all about?

In 2021, the Saddlers were in the process of buying one former naval station in Puerto Rico, with the idea of ​​turning the 1,500 acres into a high-end golf resort. The lawsuit says the Sadlers hired Kelley School professor Will Geoghegan and five former MBA students to provide consulting services to the resort via a special class.

The saddlers got Geoghegan to sign an NDA, who then allegedly promised to get the students to sign one as well, according to the suit. Instead, the lawsuit says, the students approached a corporate competitor, Discovery Land, with the resort idea, allegedly to “explore(s) a union” with the competitor and seek an offer.

The lawsuit says Discovery Land then approached the local redevelopment authority to buy the land and “steal the project.” Discovery Land is also listed as a defendant in the suit.

What do the saddlers seek in compensation?

In an accompanying press release, the Sadlers say the Kelley class estimated the resort’s profits to be between $1 billion and $2 billion, which is the amount the Sadlers are seeking.

The lawsuit seeks punitive damages against the former students and Discovery Land for interference with contracts and business relationships as well as negligent supervision by the professor.

Where does the golf resort lawsuit stand now?

The case was filed in Marion Superior Court on Dec. 16. The defendant has 20 days to respond in writing to the complaint.

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Well Brian Rosenzweig at [email protected]. Follow him on Twitter/X at @brianwritesnews.

This article originally appeared on The Herald-Times: IU Kelley professor, former student sued for $2 billion for stolen idea