MrBeast Sues Former Employee Over Alleged Trade Secrets Theft and Hidden Cameras in Office

Jimmy Donaldson, widely recognized as MrBeast, is at the center of a legal battle against Leroy Nabors, a former employee, as detailed in a lawsuit filed on April 4 in a North Carolina court. The lawsuit brings serious charges including the misappropriation of trade secrets and breach of contract, raising significant concerns about the internal security of Donaldson's rapidly growing empire. MrBeast, known for crafting viral YouTube videos that captivate millions, has expanded his brand into a vast business operation employing roughly 350 individuals, according to the court documents reviewed by Polygon. His success has led to a diverse portfolio that includes a snack brand, a venture into fast food with a burger chain that faced challenges, and a reality TV show titled Beast Games. Reportedly, MrBeast Industries generated an astonishing $473 million in revenue last year, a testament to Donaldsonâs influence in the digital content landscape.Leroy Nabors joined MrBeast Industries in 2023 as an IT contractor, tasked initially with managing the companyâs IT network and overseeing the servers that stored post-production video content. However, as indicated in the lawsuit, Nabors subcontracted his daughterâs IT company, Vine Networks, to assist in these responsibilities. Later, in late 2023, Nabors transitioned to a role in the companyâs special projects team within the development department, which engaged in various activities ranging from content production to fundraising and even political advocacy. His tenure with MrBeast ended on October 1, 2024, when he was terminated from his position.Given the sensitive nature of his IT role, Nabors was required to sign a non-disclosure agreement (NDA), which the lawsuit alleges he violated by downloading an extensive amount of confidential company data prior to his dismissal. A review of his activities revealed that he allegedly downloaded more than a thousand files containing crucial business strategies, financial data, employee personal information, and other intellectual property owned by MrBeast Industries. The lawsuit suggests that Nabors may have anticipated his termination and took steps to prepare for it. When confronted by company representatives, he claimed that the extensive downloading was merely part of routine data backup procedures. However, the investigation indicated that he had been syncing files to a personal Dropbox account, which still holds thousands of sensitive documents from MrBeast Industries, raising serious concerns about the security of the companyâs proprietary information.Crucially, the internal probe following Nabors' firing uncovered multiple hidden cameras installed throughout the MrBeast offices, sparking alarm within the company. The lawsuit states that no other employees recalled installing these cameras, while Nabors had garnered a reputation among coworkers for secretly recording meetings. The company believes that both Nabors and his daughterâs company were responsible for managing access to these surveillance devices.As a result of these alarming developments, Donaldson and his team are seeking to recover and delete any information Nabors may be holding that could expose sensitive details about their multimillion-dollar operation and its employees. They are pursuing damages and a permanent injunction that would compel Nabors to return all improperly obtained Beast information.Despite efforts to reach out for comments, Polygon has not received responses from either Donaldson or Nabors through their respective attorneys. This legal dispute is not the first for either party involved; Nabors was previously sued in 2022 by Edu-Net, an IT contracting firm he founded, after establishing a competing entity that allegedly siphoned significant revenue away from Edu-Net. Likewise, Donaldson has faced legal challenges, including a September 2023 lawsuit filed by five contestants from the Beast Games reality TV show, citing hazardous conditions during production. Additionally, there have been several other lawsuits related to his various business ventures, including a notable case in 2023 against Virtual Dining Concepts, where he attempted to extricate himself from a brand deal involving poor-quality hamburgers marketed under the MrBeast name.