Arxada Awarded Nearly $70M as Court Enters Final Judgment in Trade Secret and M&A Noncompetition Case

Morristown, N.J., March 17, 2026 – Arxada announced that, on March 13, 2026, the Delaware Court of Chancery entered its final judgment in the company’s litigation involving Michael Harvey, Phil Harvey, Aaron Harvey, Capacity Chemical, LLC and BlueTech Laboratories, Inc. The case relates to conduct following Arxada’s 2021 acquisition of Enviro Tech Chemical Services, Inc.

In its final judgment, the Court awarded nearly $70 million to Arxada, inclusive of compensatory and exemplary damages and expenses, including attorneys’ fees. Post‑judgment interest begins accruing immediately and will compound quarterly.

The Court found that the defendants breached multiple restrictive covenants, including the non-competition, non-solicitation of customers and employees, fiduciary duties and confidentiality obligations. The Court also found misappropriation of Arxada’s trade secrets and confidential information. Additionally, the Court granted injunctive relief against the Harveys and their related companies to protect Arxada’s interests.

“We pursued this matter to safeguard our business, our employees, and our assets,” Sanjeev Rastogi, CEO of Arxada said. “Protecting our intellectual property and enforcing our contractual rights is essential to ensuring a fair and competitive marketplace.”

The Court of Chancery’s decision endorses the principle of non-compete provisions in the context of business acquisitions and defends Arxada’s bargained for contractual rights while securing its valuable trade secrets. 

“This ruling is a resounding victory—not just for Arxada, but for the broader M&A community—as it reinforces the protection of trade secrets and intellectual property, while deterring anti-competitive behavior,” said Kristin Rinaldi, Arxada’s Senior Vice President, General Counsel.