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He would not be able to sue for wrongful arrest based on what you have told me as he did legally commit theft by taking data from your company. If his actions have caused detriment to your company, you may actually file suit against him as well as seek an injunction to make him stop his actions that are causing the damage.
If he had signed an agreement to not compete, he will further be liable for giving this information to other businesses.
He has also infringed upon trade secrets of the business in distributing this data to others.
I would highly recommend getting an attorney to file suit against him as well as the company that received the information so that they will no longer be able to use it.
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