1burnillion

sorry to say it but it sounds like you are the "other startup" with their hands on the confidential info of your competitors / the applicants. Looking to get feedback on your intended possible course to sue, under the guise of capturing mood of this or possible counters of your defendants-to-be.

My advice is: don't do it. You weren't supposed to use the information in the review process for this purpose. If it got out about this conflict of interest, it would tar both the government department responsible for the innovation grants, and your own company's reputation. You won't really win about this.

If you want to use the info, then use it, but do so through your own business and products, rather than through the courts in this case. But just by using their confidential info in this way, you open yourselves to actions by them.