Internet Celebrity Mr. Beast Settles Trade Secret Dispute With Former IT Employee
On February 11th, 2026, Bloomberg Law News reported that Mr. Beast (Jimmy Donaldson) has agreed to settle a trade secret dispute with one of his former information technology (IT) workers (Leroy Nabers). The ultra-famous internet star’s company had accused the employee of misappropriating a legally protected trade secret. Here, our Boca Raton trade secret protection attorney highlights key things to know about this case and the law.
Allegations of Trade Secret Misappropriation: Settlement Reached
In February of 2026, Jimmy Donaldson, known publicly as Mr. Beast, resolved a federal trade secret lawsuit against his former IT employee, Leroy Nabers. The case was filed in the U.S. District Court for the Eastern District of North Carolina in 2025. Mr. Beast’s company alleged that Mr. Nabers improperly accessed, downloaded, and retained confidential business materials shortly before his termination in October of 2024.
According to the complaint, Mr. Nabers worked first as an IT contractor and later as a full-time employee with elevated system access. The company alleged that he downloaded more than a thousand internal files, including proprietary business strategies, financial data, investor information, internal communications, and employee records. The lawsuit asserted claims under the federal Defend Trade Secrets Act (DTSA) as well as North Carolina law.
The complaint further alleged that Mr. Nabers synchronized company data to a personal cloud storage account and retained access credentials after separation. Mr. Beast’s company sought injunctive relief requiring the return and deletion of all confidential materials, along with damages and attorneys’ fees. However, as confirmed by Bloomberg Law News, a confidential settlement has now been reached to resolve the case.
What Qualifies as a Trade Secret Under the DTSA?
In 2016, the Defend Trade Secrets Act (DTSA) became the first federal law to provide comprehensive trade secret protection. The law defines a trade secret broadly to include financial, business, scientific, technical, economic, or engineering information that derives independent economic value from not being generally known and is subject to reasonable measures to maintain its secrecy. The information may exist in tangible or intangible form, including compilations, formulas, source code, customer lists, manufacturing processes, and strategic plans.
Two elements control: 1) economic value from secrecy and 2) reasonable efforts to protect confidentiality. If either element fails, there is no legally protected trade secret under the DTSA. The party bringing a trade secret misappropriation claim has the duty of proving that they actually have a viable trade secret. Only when that is established will the case move forward to the issue of whether or not the defendant breached the trade secret in question.
Call Our Boca Raton, FL Trade Secret Lawyer Today
At Perkins Law — Brand Protection, our Florida intellectual property attorney is a solutions-focused advocate for clients. If you have any questions about trade secrets, we are here to help. Contact us now for a completely confidential, no obligation initial consultation. With an office in Boca Raton, we handle patent law matters throughout South Florida, including in Broward County, Palm Beach County, and Miami Dade County.
Source:
news.bloomberglaw.com/ip-law/mr-beast-settles-trade-secrets-dispute-with-ex-it-employee
