Did Indiana University Business Students Steal a $2 Billion Business Opportunity?

As Jack Forrest reported in the Indiana Daily Student back in February, Tim and Doris Anne Sadler sued Indiana University’s Kelley School of Business (the Kelley School), a business law professor, five former students, a developer, Discovery Land, and Indiana University (IU) itself. Tim Sadler graduated from IU in 1992, and the couple had in the past been supporters of the university. The Sadler’s shared confidential plans developed with their business, World Trade Center San Juan (WTCSJ) with the students for a classroom exercise. They allege that the students then shared the plans with a rival, Discovery Land, after the students concluded that the plan could generate $1-2 billion in revenue. Discovery Land, the complaint alleges, then stole the WTCSJ’s business plan.

The plaintiffs allege that they had secured land and permits to develop a 1500 acre golf venue, the Roosevelt Reserve in Puerto Rico. They raised funds, and they claim that they expended hundreds of thousands of dollars in connection with developing the Roosevelt Reserve. Plaintiffs allege that they permitted the Kelley School to develop a course built around the project. They allege that all involve signed non-disclosure agreement (NDAs) and that IU provided representations and assurances that confidential business plans would not be shared. The complaint acknowledges that the professor who ran the course had no authority to bind IU. The complaint alleges that some students in the course had connections to one of WTCSJ’s rivals, Discovery Land, and shared confidential information with that entity.

Plaintiffs further allege that, once the students had shared WTCSJ’s confidential information with Discovery Land, the latter seized the business opportunity, taking over the Roosevelt Reserve. The Puerto Rican Local Development Authority then allegedly breached its agreements with WTCSJ and partnered with Discovery Land.

Plaintiffs allege tortious interference by the students and Discovery Land, and they seek punitive damages. They allege negligent supervision by the professor.