Former Employee Accused by AI Pioneer Company of Trade Secret Theft

OriGen.AI, Inc., a leader in artificial intelligence for the energy sector, has filed a lawsuit against a former employee, alleging theft of trade secrets. The complaint was lodged on February 17, 2026, in the United States District Court for the District of New Jersey against Daniel Badawi. OriGen claims that Badawi stole proprietary information and is poised to use it at his new job with a direct competitor.

The legal action stems from Badawi’s resignation from OriGen on February 2, 2026. According to the complaint, Badawi was a Physics Informed Neural Network Engineer who had access to sensitive company data. OriGen accuses him of connecting an unauthorized USB device to his work laptop and syncing confidential files to his personal OneDrive account. These files allegedly contained critical trade secrets such as source code and algorithms vital to OriGen’s AI-driven reservoir simulation platform, Proteus. Despite being confronted with evidence of these actions, Badawi reportedly denied any wrongdoing and refused to sign a truthful termination certification.

OriGen asserts that Badawi breached several contractual obligations outlined in his Confidential Information and Invention Assignment Agreement (CIIAA), including confidentiality clauses and non-compete terms. The company further alleges that he lied about his new employer’s market position to avoid scrutiny over potential competition conflicts. The plaintiff argues that UniversalAGI, where Badawi is set to begin employment on February 16, 2026, directly competes with OriGen by developing similar AI models for physics simulation.

The lawsuit seeks multiple forms of relief from the court: an injunction preventing Badawi from using or disclosing OriGen’s trade secrets; prohibiting him from commencing employment with UniversalAGI or any competitor for one year; ordering the return of all proprietary materials; and permitting forensic examination of his personal devices. Additionally, OriGen demands compensatory damages, exemplary damages due to willful misconduct under federal and state trade secret laws, and attorneys’ fees.

Representing OriGen.AI are attorneys John J. Powell, Edward J. Heffernan, and Anna Volkov from Montgomery McCracken Walker & Rhoads LLP. The case is identified as Case No. 2:26-cv-01558 in the United States District Court for the District of New Jersey.