Legal Question in Investment Law in California

Possibly, they can sue you if you worked for them before and you entered into a non-compete clause. These clauses have to limited, however, in terms of how long you agree not to compete and in what geographical areas. They cannot be too broad. They can also sue you if there is a trademark confusion issue, e.g., you start a business under a similar name that might confuse the consumer.

A potential competitor cannot successfully sue you simply because you enter into competition with them.

Other facts plus competition, however, may give rise to a right to sue. These include the theft of trade secrets and customer lists, the infringement on trademarks and other intellectual property, and the theft of employees are some common grounds.

I would tend to agree with Mr. Perry's answer.