TAMPA, Fla.–In an unusual move, Grow Financial FCU here has filed suit against GTE Financial Credit Union alleging that a former Grow Financial employee copied confidential information and provided it to GTE.
The suit alleges that Erica Pierson, who was formerly an underwriting specialist with Grow Financial, acted at the request of GTE Assistant Vice President James Esner, who is also a former employee of Grow Financial, and provided private information and other trade secrets from Grow Financial to GTE Financial.
In a statement to CUToday.info, GTE Financial said it was unable to gain further “understanding and clarification” from Grow Financial that might have led to an agreement of some kind prior to the filing of the litigation.
The suit, filed in Florida Middle District Court before judge Julie Sneed, further alleges that Pierson removed documents related to Grow Financial’s lending strategy and other internal loan procedures and provided those to Esner. Grow Financial stated that Pierson used her company email to send the documents to her personal email before forwarding them to Esner at GTE Financial. Among the documents that Grow Financial alleges were copied was information related to auto dealers, as well as other research.
The Tampa Bay area is among the most competitive among credit unions. The $2.3-billion Grow Financial has 196,000 members. The $1.9-billion GTE Financial has 253,000 members. The market is also home to the $8.4-billion Suncoast Credit Union.
In response to the lawsuit, GTE Financial issued a statement from President/CEO Brian Best to CUToday.info that said, “While this is a disappointing and rare event in a uniquely collaborative and supportive credit union industry, GTE Financial will remain focused on our top priorities of delivering exceptional member service, supporting our great team and giving back through philanthropic efforts. This lawsuit in no way affects our members, their data or their accounts. While litigation among credit unions has not been typical, lawsuits in general have become more common as market competition on both the employment and consumer side has increased. Although efforts were made to gain understanding and clarification prior to this point, we neglected to receive any additional communication that could have helped in possibly avoiding litigation. GTE will continue to move forward in positive ways, ensuring the member and employee experience will not be impacted. We wholeheartedly believe in partnership and supporting fellow credit unions to strengthen the industry and our community and will continue to do so.”
GTE Financial added that “further details cannot be confirmed, denied or supplied in respect of the parties involved in addition to upholding the integrity of the proceedings.”