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Posts Tagged ‘Trade Secret’

Jury Hits Tata With $940M Trade Secrets Verdict

April 28th, 2016 Alexander No comments

A Wisconsin jury slapped Tata with a $940 million trade secrets verdict, including $700 million in punitive damages, for stealing information related to Epic Systems Corp.’s health care software.

After Tata reviewed Epic’s intellectual property under the pretense of doing consulting work for an Epic client, Epic accused Tata of stealing documents and other confidential information tied to the software it builds for health care companies to manage billing, insurance benefits management and referral services.

Epic’s software is used in a wide variety of health care contexts, and the company boasts that 190 million people have an electronic record in Epic. For example, Kaiser Permanente, the largest managed health care organization in the U.S., hired Epic in the past to handle its patient records.

A few years later, people working for Tata sent requests for access to the company’s sensitive internal web under the guise of being Kaiser Permanente employees in need of training, Epic said.

Kaiser assured Epic that the consultants were working for the health care organization, so Epic had the workers sign a privacy contract to keep the inner workings of its software secret.

But behind Epic’s back, the Tata workers had been accessing Epic’s internal network to gather information about the software, which they used to benefit Tata’s competing product.

Tata  argued that Epic was unfairly accusing the company of fraud without supporting its claims with facts, but their motion to dismiss was rejected by the judge.

For more information, see Law360.



Judge Orders Arrest Of Brothers In NuScience Trade Secret Suit

October 28th, 2015 Alexander No comments

A California federal judge issued an arrest warrant for two brothers embroiled in a trade secrets battle with NuScience Corp., saying they violated orders to appear in court and to cease posting online messages and sending emails about the company’s Cellfood supplement.

U.S. District Judge Manuel L. Real found the defendants in contempt of court and ordered them to shut down websites and Facebook material claiming they know the ingredients and formula for the NuScience’s “oxygen + nutrient” supplement.

The Internet postings and emails didn’t comply with the permanent injunction provisions of a 2009 judgment in favor of NuScience, ruled the court.

Judge Real also ordered the defendants to appear in court for the hearing. When they didn’t show up, they stated they could not afford to make the 200-mile trek from their homes in Iowa.

“These statements do not clear the contempt,” Judge Real said. “They will be placed in custody until they properly answer the questions put to them previously by this court.”

The court battle stems from a “secret” formula developed by a man named Everett Storey who died in the 1980s, on which both Cellfood and a formula developed by the defendants are purportedly based.

NuScience and the defendants both claim to have obtained the formula legally from Storey. One brother says Storey gave it to him before dying. NuScience says it bought the formula from Storey’s family after his death.

The company accused the defendants of marketing their product as “Ev Storey’s ‘Original’ Kitchen Formula” with the tagline “We ‘cell’ for less.”

Additionally, NuScience said the defendants violated its “Everett Storey” mark and threatened its more than $230 million in annual worldwide sales.

For more information, see Law360.