Several former employees left Yahoo! to join mobile game publisher and distributor Mforma. The problem, according to Yahoo!, is that the former employees took with them various trade secrets regarding Yahoo!'s technology for sending content to mobile phones. Yahoo! filed a lawsuit against Mforma in Santa Clara County, seeking damages and an injunction to prevent Mforma from using the information.
Microsoft filed a similar lawsuit against Google last year regarding a senior executive who left Microsoft to join Google. The parties eventually settled that lawsuit