Claimant CARDIOVASCULAR BIOTHERAPEUTICS, INC. (“Cardio”), for its Complaint for Theft of Trade
Secrets, Civil Conspiracy, Breach of Fiduciary Duty, Champerty, Civil RICO Violations and
Injunctive Relief against Defendants Zhittya Regenerative Medicines, Inc. (“ZRM”), Zhittya Genesis
Medicines, Inc. (“ZGM, ” and together with ZRM, “Zhittya”), John Laub (“Laub”), and Viktoriya
Tamlenova-Montano (“Viktoriya,” and together with Zhittya and Laub, the
“Defendants”), states as follows:
PARTIES
1. Plaintiff CardioVascular BioTherapeutics, Inc. is a corporation organized and existing
under the laws of the State of Delaware, with its principal place of business in Dallas, Texas.
CARDIOVASCULAR BIOTHERAPEUTICS, INC.,
Plaintiff,
vs.
ZHITTYA REGENERATIVE MEDICINE, a
Delaware Corporation; ZHITTYA GENESIS MEDICINE INC., a Nevada Corporation; JOHN LAUB, an
individual; and VIKTORIYA TAMLENOVA-MONTANO, an individual.
Defendants.
Case No.:
EXEMPT FROM ARBITRATION. INJUNCTIVE RELIEF SOUGHT
Dept. No:
COMPLAINT FOR THEFT OF TRADE SECRETS; CIVIL CONSPIRACY; BREACH OF FIDUCIARY DUTY; CHAMPERTY; CIVIL
RICO VIOLATIONS;
AND INJUNCTIVE RELIEF
Case Number: A-18-785986-C
Electronically Filed 12/12/2018 4:57 PM
Steven D. Grierson CLERK OF THE COURT
A-18-785986-C
epartment 15
1 2. Defendant Zhittya Regenerative Medicine, Inc. (“ZRM”) is a
forfeited corporation
2 originally organized and which existed under the laws of the State of Delaware with its
principal office
3 in the State of Nevada. ZRM may be served in this lawsuit, among other methods, by serving
its
4 registered agent in Nevada, the DeMint Law, PLLC, 3753 Howard Hughes Parkway, Suite 200-314,
5 Las Vegas, Nevada 89169.
6 3. Defendant Zhittya Genesis Medicine Inc. (“ZGM”) is a
corporation organized and
7 existing under the laws of the State of Nevada with its principal office in the State of
Nevada. ZGM
8 may be served in this lawsuit, among other methods, by serving its registered
agent in Nevada,
9 Viktoriya Tamlenova-Montano, 3017 Carbondale St., Las Vegas, Nevada 89135.
10 4. Defendant Viktoriya Tamlenova-Montano is an individual
residing in Las Vegas,
11 Nevada who may be served in this lawsuit, among other methods, at 3017 Carbondale St., Las
Vegas,
12 Nevada 89135.
13 5. Defendant John Laub is an individual residing in Las Vegas,
Nevada who may be
14 served in this lawsuit, among other methods, at 9501 Royal Windsor Ave., Las Vegas, Nevada
89149.
15 JURISDICTION AND VENUE
16 6. This Court has subject matter jurisdiction over this
action under the Nevada
17 Constitution, Article 6, §6.
18 7. Venue is proper in this Court pursuant to NRS 13.040 inasmuch as
each of the individual
19 defendants reside in the County in which this law suit has been brought.
20 INTRODUCTION
21 8. Cardio requests this Court’s intervention to prevent each of the
named Defendants from
22 continuing to conspire with Daniel C. Montano (“Montano”) and John W. Jacobs (“Jacobs”) in
the
23 execution of a plan calculated to cause severe irreparable damage to Cardio
through the theft and
24 dissemination of highly confidential trade secrets and intellectual property rights
owned and/or
25 exclusively licensed to Cardio (“Cardio Proprietary Information”) in violation of
Montano’s and 26
2
1 Jacob’s fiduciary duties to Cardio and in breach of express contractual provisions in
Montano’s and
2 Jacobs’ Employment Agreements (as hereinafter defined).
3 9. This is an action for theft of trade secrets, civil conspiracy,
breach of fiduciary duties,
4 champerty, and civil RICO violations. Additionally, Cardio seeks temporary,
preliminary, and
5 permanent injunctive relief in addition to monetary damages.
6 FACTUAL ALLEGATIONS
7 10. Cardio is a biopharmaceutical company developing protein drug
candidates to address
8 diseases that result from lack of blood flow to a tissue or organ such as in the growth of
blood vessels
9 in the treatment, inter alia, of heart disease, lumbar ischemia, diabetic ulcers, bed sores,
stroke , spinal
10 cord injury neuropathy, Parkinson’s Disease, ALS, multiple sclerosis, kidney
ischemia, intestinal
11 ischemia, pancreatitis, bone repair, cartilage repair, hair growth
induction, severe coronary
12 microvascular disease, erectile disfunction, and peripheral artery
diseases (“Cardio’s
13 Biopharmaceutical Business”). The active pharmaceutical ingredient in Cardio’s drug
candidates is
14 FGF-1, a human protein that stimulates the growth of new blood vessels, thereby increasing
the blood
15 supply to ischemic organs and tissues.
16 11. Montano was Chairman of the Board of Directors, President and Chief
Executive Officer
17 of Cardio until September 16, 2014 when Cardio terminated Montano’s role with Cardio as
Chairman
18 of the Board of Directors, President, and Chief Executive Officer. Prior to his termination
on September
19 16, 2014, Montano had entered into an Employment Agreement with Cardio dated January 1, 2007
(the
20 “Montano Employment Agreement”), a true and correct copy of which is attached hereto as
Exhibit
21 “A”. Montano's Employment Agreement imposed obligations upon Montano to maintain
the
22 confidentiality of all Cardio Proprietary Information and to refrain from utilizing any
Cardio Proprietary
23 Information to directly or indirectly compete with Cardio during or following his employment
with
24 Cardio. Additionally, Montano agreed under the provisions of Section 6.2(b) of
his Employment
25 Agreement, that if Montano used any Cardio Proprietary Information other than in connection
with his
26 employment with Cardio, any gain or profit derived by Montano as a result of Montano's use
of such
3
1 Cardio Proprietary Information would be held in trust for the benefit of Cardio and would be
remitted
2 by Montano to Cardio upon demand. Further, during Montano's employment with Cardio, Montano
3 was subject to an Employee Confidential Information and Non-Solicitation Agreement dated
March 11,
4 1998 (the “Montano Confidential Information Agreement”), a true and correct copy
of which is
5 attached hereto as Exhibit “B”. Montano was additionally subject to a Code of Business
Conduct (the
6 “Code of Conduct”), a true and correct copy of which is attached hereto as Exhibit “C”. The
Montano
7 Confidential Information Agreement and the Code of Conduct imposed additional obligations
upon
8 Montano to maintain the confidentiality of all Cardio Proprietary Information and
to refrain from
9 utilizing any Cardio Proprietary Information to directly or indirectly compete with Cardio
during or
10 following Montano's employment with Cardio. The Montano Employment Agreement, the Montano
11 Confidential Information Agreement, and the Code of Conduct, are collectively referred to
herein as the
12 “Montano Employment Agreements.”
13 12. Jacobs was a Chief Scientific Officer and Chief Operating
Officer of Cardio until
14 September 18, 2014 when Cardio terminated Jacobs’ role with Cardio as Chief Scientific
Officer and
15 Chief Operating Officer. Prior to his termination on September 16, 2014, Jacobs had entered
into an
16 Employment Agreement with Cardio dated January 1, 2007 (the “Jacobs’ Employment Agreement”),
17 a true and correct copy of which is attached hereto as Exhibit “D”. Jacobs' Employment
Agreement
18 imposed obligations upon Jacobs to maintain the confidentiality of all Cardio Proprietary
Information
19 and to refrain from utilizing any Cardio Proprietary Information to directly or indirectly
compete with
20 Cardio during or following his employment with Cardio. Additionally, Jacobs
agreed under the
21 provisions of Section 6.2(b) of the Jacobs Employment Agreement that if Jacobs
use any Cardio
22 Proprietary Information other than in connection with his employment with Cardio, any gain
or profit
23 derived by Jacobs as a result of Jacobs’ use of such Cardio Proprietary Information would be
held in
24 trust for the benefit of Cardio and would be remitted by Jacobs to Cardio upon demand.
Although
25 Jacobs’ Employment Agreement was replaced by a Consulting Agreement between Jacobs and
Cardio
26 dated March 1, 2010 (the “Consulting Agreement”), a true and correct copy of which is
attached hereto
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