‘You ruined our Christmas’: Leaked texts to Cyara CEO reveal sales boss’s fury before he allegedly downloaded 11,000 files and joined a rival in lucrative government contract battle
Cyara Solutions, a Melbourne-founded, Texas-based AI customer experience software firm, is suing former ANZ sales manager Stephen Mitchell and rival company Hypertech Solutions over an alleged breach of confidentiality obligations. Cyara claims Mitchell misused confidential information he obtained during his employment to benefit Hypertech, which was competing for a contract worth around AU$3.5 million connected to work for the Australian Taxation Office (ATO). Hypertech denies the allegations, and the case, filed in the Supreme Court in June 2024, centres on whether Mitchell's conduct after learning he had been overlooked for promotion amounted to a deliberate leak to a competitor.
According to Cyara's statement of claim, Mitchell managed the company's relationship with Optus, which subcontracted Cyara to service the ATO, and had been renegotiating a three-year contract renewal in mid-2023. After learning in late 2023 that he would miss out on a new "Vice President of International Sales" role and would not attend the firm's annual US sales event, Mitchell allegedly downloaded roughly 11,000 work files to a personal drive around 8 December, more than 3,500 of which reportedly contained sensitive pricing, product and contract information. Mitchell disputes this account, saying the files were saved for remote work purposes unrelated to any employment concerns, while a tense Christmas Eve phone call with Cyara chief executive Alok Kulkarni reportedly heightened fears his job was at risk before his eventual dismissal.
In short
- Cyara sues ex-manager Stephen Mitchell and rival Hypertech over alleged data misuse.
- Dispute involves a $3.5 million ATO-linked contract via Optus.
- Mitchell allegedly downloaded 11,000 files before leaving; he disputes the claims.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Cyara’s case is that a large download of files containing sensitive commercial information, shortly after Mitchell learned he had been passed over for promotion, warrants concern that the material could have helped a rival pursuing the same government-linked contract. If confidential information was used to give Hypertech an advantage, protecting it would be important both to the company’s legitimate interests and to fair competition.
The case against
Mitchell’s account is that he saved the files for remote work, and the timing alone does not establish that he intended to pass them to a competitor or that they were used in the bid. Hypertech denies wrongdoing, and a fair assessment should depend on evidence about what was downloaded, why it was retained, and whether any confidential material was shared or used—not on suspicion arising from a workplace dispute.
Explained simply
Cyara Solutions sells software used to assess and improve customer service systems. It worked on Australian Taxation Office services through Optus, which subcontracted the work to Cyara, and was negotiating a contract renewal in 2023.
Stephen Mitchell managed Cyara’s relationship with Optus before leaving to join rival Hypertech Solutions. Cyara says he took confidential company files and that information could have helped Hypertech compete for government-related work. Mitchell says he saved the files for remote working, and Hypertech denies the allegations.
The dispute is being heard in the Supreme Court of Victoria. It concerns what happened to the files and whether Mitchell’s conduct breached his confidentiality obligations. The outcome matters to both companies and may affect the competition for a contract worth about A$3.5 million.
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