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Carepoynt LLC, a California-based healthcare technology firm, has filed suit in Delaware Chancery Court, accusing longtime partner Well Dot Inc. of stealing proprietary rewards technology and attempting to terminate their contract years early after secretly developing a competing platform.

The complaint, filed Friday, alleges breach of contract, misappropriation of trade secrets, and fraudulent inducement, claiming Well Dot manipulated Carepoynt into a three-year contract extension while secretly planning to replace its services.

Allegations and Legal Demands

"Carepoynt seeks injunctive relief and damages for Well Dot’s misappropriation of its trade secrets, including a constructive trust for misappropriated profits, an injunction to stop use of proprietary technology, and an order requiring Well Dot to fulfill its contractual obligations," the complaint states.

Founded in 2016, Carepoynt provides white-label healthcare rewards technology aimed at encouraging healthy behaviors among employees and health plan members. The company partnered with Well Dot in 2018, formalizing the relationship through a master development agreement and a Care Cloud platform services agreement effective Jan. 1, 2020. Under the contract, Carepoynt operated Well Dot’s rewards program using proprietary software, APIs, vendor relationships, and custom catalogs, while Well Dot marketed the platform to large employers.

Dispute Over Contract and Trade Secrets

The dispute centers on contract renewals and amendments, culminating in a three-year renewal effective Jan. 1, 2025. Carepoynt invested approximately $1 million in platform upgrades to meet new employer client requirements, securing the longer term in exchange.

Carepoynt alleges Well Dot never intended to honor the extension, using its access to reverse engineer Carepoynt’s proprietary technology while preparing a financing round. After that round in April 2025, Well Dot accelerated development of its own in-house rewards program, migrating customers off Carepoynt’s system.

In August 2025, Well Dot allegedly notified Carepoynt it would not renew the agreement and would terminate it at year-end. Carepoynt claims this breached the amended contract, which legally locks both parties in through Dec. 31, 2027, triggering rights to equitable relief, including injunctions and specific performance.

Trade Secret Claims

Carepoynt’s complaint invokes the Delaware Uniform Trade Secrets Act, asserting that its APIs, vendor rebate structures, catalog configurations, pricing logic, and system architecture have independent economic value and were shared solely for joint program purposes. The company contends that Well Dot could not have built its internal rewards platform without misappropriating confidential information, calling the actions willful and malicious, and seeking enhanced damages and attorney fees.

Carepoynt requests enforcement of the contract through Dec. 31, 2027, along with injunctive relief, damages, and a constructive trust over profits allegedly derived from the disputed program.

Representatives for the companies did not immediately respond to requests for comment Monday.

Carepoynt LLC is represented by Stephen Brauerman and Abraham C. Schneider of Bayard PA. Counsel for Well Dot Inc. was not immediately available.