Insulet Corp., a Massachusetts-based medical device company, secured a staggering $452 million jury verdict against South Korea’s EOFlow Co. Ltd. on Tuesday, marking one of the largest trade secrets awards of the decade.
The federal jury found that EOFlow and its CEO misappropriated four trade secrets related to Insulet’s wearable insulin patch pump, OmniPod, and determined the theft of three secrets to be willful and malicious. The verdict includes $170 million in compensatory damages and $282 million in punitive damages.
Background of the Dispute
Insulet, which began developing its OmniPod insulin pump in the early 2000s, filed the lawsuit in 2023 after four former employees joined EOFlow. Insulet claimed the company used stolen trade secrets to develop its competing product, which received regulatory approval in South Korea and Europe in 2019 and 2022, respectively.
Insulet also alleged the misappropriation came to light when Medtronic, a major competitor, considered acquiring EOFlow.
Jury Findings
The jury sided with Insulet on all four trade secret claims. In its decision, the jury determined that EOFlow’s conduct was not only unlawful but also egregious, justifying the substantial punitive damages.
Significance of the Verdict
The $452 million award underscores the gravity of trade secret misappropriation in the competitive medical device industry. It is a sharp warning against the unauthorized use of proprietary technology, particularly in the rapidly evolving market for wearable medical devices.
Legal Representation
- Insulet: Represented by Goodwin Procter LLP, with attorneys including Robert D. Carroll, Robert Frederickson III, and Scott T. Bluni.
- EOFlow: Represented by Cooley LLP, with a team led by Michael Sheetz and Adam S. Gershenson.
Both parties’ legal counsel declined to comment on the verdict.
What’s Next?
EOFlow is expected to explore post-trial motions or appeal the verdict. The case highlights the heightened scrutiny on intellectual property disputes, especially in technology-driven industries.
