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Medical device company Cynosure secured a $25 million jury award after a Massachusetts federal court found that rival Reveal Lasers and two former Cynosure sales managers had violated noncompete, nonsolicitation, and nondisclosure agreements. The verdict concludes a contentious trial over claims that Reveal Lasers raided Cynosure's sales and marketing teams, causing significant business losses.

Jury Finds Breach of Agreements and Fiduciary Duty

The jury determined that former Cynosure sales managers Robert Daley and Christopher Chambers were responsible for leading an exodus of over two dozen employees from Cynosure to Reveal Lasers in 2022. This move, which included the alleged theft of trade secrets, resulted in Daley and Chambers violating their noncompete and nonsolicitation agreements, as well as the implied covenant of good faith and fair dealing.

Cynosure claimed that the departing employees took critical business information, including trade secrets on thumb drives, which would provide significant competitive advantages to Reveal Lasers, a company competing in the cosmetic medical device market for treatments like laser hair removal and wrinkle reduction.

Cynosure Wins $25M Verdict : Jury Awards $25 Million in Damages

Cynosure was awarded $15 million in damages against Reveal Lasers to compensate for lost profits from the mass employee departures, although this figure was far lower than the $64 million in damages Cynosure originally sought. Daley was ordered to pay $5.25 million, while Chambers owes $5 million for their unlawful conduct. The jury also found that Reveal Lasers had aided Daley and Chambers in breaching their fiduciary duties to Cynosure.

Although the jury found that Reveal and the former employees misappropriated Cynosure’s trade secrets, they ruled that the theft did not directly cause harm.

Post-Trial Relief Sought by Defendants

Following the verdict, Reveal’s attorney, Madison Dini of Michelman & Robinson LLP, announced plans to seek post-trial relief, challenging the jury's findings. "We don't believe it's supported by the record," Dini said, arguing that the case boiled down to noncompete issues and expressing confidence that the jury had erred in its decision.

During closing arguments, the defense portrayed Cynosure as a company already in decline, blaming its leadership for the loss of employees to Reveal Lasers.

Cynosure Wins $25M Verdict : Legal Teams and Case Details

Cynosure was represented by Arnold & Porter Kaye Scholer LLP, with attorney Dipanwita Deb Amar likening the defendants' actions to setting a house on fire and then avoiding responsibility. Meanwhile, Reveal Lasers’ defense, led by Michelman & Robinson LLP, contended that Cynosure failed to retain its employees and allowed its metaphorical house to burn without intervention.