Any more information on the specifics of the case. It is pending and a civil matter
Pathway Genomics is going broke with legal fees. They have their attorneys on speed dials.
In the 09/17/2014 edition:
Millennium Health sues Pathway Genomics for trade secret violations
By The Pathology Blawg on Sep 17, 2014 08:00 am
Millennium Health logoMillennium Health (formerly Millennium Laboratories) has filed a lawsuit against Pathway Genomics, its CEO James Plante, and Millennium’s former laboratory director Dr. Amadeo Pesce, alleging violation of California’s Trade Secrets Act, breach of contract, breach of duty, tortious interference, unfair competition, conversion and unjust enrichment.
Allegations
Millennium hired Dr. Pesce in December 2007 to “develop and operate a state-of-the-art UDT [urine drug toxicology] lab.” Prior to his employment with Millennium, Dr. Pesce allegedly had no experience with liquid chromatography-tandem mass spectrometry (LC-MS/MS) in the context of UDT testing. Millennium says this means:
…all of the knowledge and experience he currently possesses concerning the use of LC-MS/MS technology in UDT was obtained while he was serving as Millennium’s Laboratory Director…
Millennium states that during his employment, Dr. Pesce had access to and helped formulate trade secrets and proprietary methodologies that other labs do not possess and would take them years to develop on their own.
Dr. Pesce reportedly signed a confidentiality agreement in August 2008 which contained language that precluded him from engaging in unfair competition against Millennium.
Over the next seven years, Dr. Pesce became a “trusted leader in the company” and was “entrusted with a wide variety of Confidential Business Information”.
In August 2014, Dr. Pesce informed Millennium he was resigning from his position but refused to say where he was going. It took all of a day for the rumor mill at Millennium to determine Dr. Pesce had accepted a position at Pathway.
Dr. Pesce confirmed the rumors and also informed Millennium that Pathway was planning to compete with Millennium in the UDT industry. Not surprisingly, that was Dr. Pesce’s last day at Millennium.
Not long thereafter, Millennium sent a letter to Pathway and its CEO James Plante that informed them of Dr. Pesce’s confidentiality agreement.
Further investigation by Millennium uncovered email dialogues between Dr. Pesce and Pathway beginning in January 2014 that continued until July 2014. During this time CEO Plante and Dr. Pesce engaged in a “number of conversations” during which:
Plante solicited and Dr. Pesce disclosed highly sensitive Confidential Business Information regarding Millennium’s proprietary LC-MS/MS techniques and testing methodologies.
One email in July contained a list of items Dr. Pesce told Pathway he would need in order to set up a UDT lab at Pathway, which to Millennium is evidence he was using the knowledge and experience he gained at Millennium to help a competitor while he was still employed at Millennium.
Millennium contends Pathway decided to branch out from its pharmacogenetic testing focus into the UDT sphere because it is “financially distressed” and is “desperate to find a new source of revenue in order to satisfy investors.” It was this desperation that led CEO Plante to recruit Dr. Pesce away from Millennium in order to start a UDT lab at Pathway using knowledge he accrued during his years at Millennium.
Millennium also alleges CEO Plante and Pathway have attempted to woo other Millennium employees away to work in Pathway’s lab.
Causes of Action
Against Dr. Pesce:
Breach of contract
Breach of fiduciary duty
Breach of duty of loyalty
Misappropriation of trade secrets
Unfair competition
Conversion
Unjust enrichment
Against Pathway and CEO Plante:
Misappropriation of trade secrets
Tortious interference with a contractual relationship
Unfair competition
Conversion
Unjust enrichment
Prayer for Relief
Millennium is seeking:
…injunctive relief, imposition of a constructive trust for improperly acquired profits, imposition of an order directing Pathway to cease developing or operating a urine drug test line of business until such time as it would have developed the line of business through lawful means, as well as compensatory and punitive damages and monetary damages, interest, and costs of the action, including reasonable attorney’s fees.
Millennium asked the judge to issue a temporary restraining order (TRO) prohibiting the defendants from disclosing, using or transferring any of Millennium’s confidential information.
As it turns out, the TRO was not needed, as both parties entered into a non-disclosure agreement, according to a September 9th court document.
Millennium’s complaint is here and the September 9th Minute Order is here.
Related posts:
Ameritox motion to dismiss Millennium Laboratories’ trade dress lawsuit rejected
Millennium Laboratories sues two of its insurers
Judge dismisses Millennium Laboratories’ trade dress infringement suit against Ameritox
Read in browser »
share on Twitter Like Millennium Health sues Pathway Genomics for trade secret violations on Facebook
Recent Articles:
OIG investigating Health Diagnostic Laboratory for possible kickbacks
Palmetto GBA introduces new guidelines for morphometric analysis
Federal prosecutor moves to seize $754K from Universal Oral Fluid Laboratories
Department of Labor sues AIT Laboratories founder Michael Evans for unjust enrichment
Dr. Steven Hayne loses appeal in lawsuit against The Doctors Company
Copyright © 2014 The Pathology Blawg, All rights reserved.
.
unsubscribe from this list update subscription preferences