Massachusetts-based Insulet Corp. secured a staggering $452 million verdict Tuesday after a federal jury found South Korean company EOFlow Co. Ltd. and its CEO had misappropriated trade secrets tied to Insulet's wearable insulin patch pump technology. The jury’s decision marks one of the largest trade secrets awards in recent years, sending a clear message about the consequences of intellectual property theft.

The jury concluded EOFlow and its leadership willfully and maliciously misused three of Insulet’s four trade secrets. The award included $170 million in compensatory damages and a substantial $282 million in punitive damages, highlighting the egregious nature of the misconduct.

A Legacy of Innovation Meets Betrayal

Insulet, a company rooted in innovation, was founded by a father seeking better insulin delivery options for his son. The company launched its flagship OmniPod wearable insulin pump in the early 2000s, fundamentally improving the lives of diabetes patients. Robert Carroll of Goodwin Procter LLP, Insulet’s lead attorney, described representing the company as an honor, lauding its transformative contributions to healthcare.

EOFlow, on the other hand, entered the market years later, receiving regulatory approval for its wearable EOPatch device in South Korea and Europe in 2019 and 2022. Insulet filed suit in 2023, alleging that EOFlow’s product was built on stolen trade secrets brought to the company by former Insulet employees.

The claims came to light as Insulet became aware of EOFlow’s discussions with Medtronic regarding a $738 million acquisition deal. Insulet alleged that EOFlow’s device mirrored critical aspects of the OmniPod after obtaining a sample of EOFlow's EOPatch.

Arguments Over Statute of Limitations

EOFlow’s defense hinged on claims that the statute of limitations had expired. The company argued that the three-year window began in 2018 when EOFlow showcased its prototype EOPatch 2 at a conference. Insulet countered, asserting that it only discovered the alleged theft in February 2023, when it was able to inspect the EOPatch.

U.S. District Judge F. Dennis Saylor IV denied both sides’ motions for summary judgment on the issue, leaving the decision to the jury. After a four-week trial involving testimony from 27 witnesses and over 300 exhibits, the jury sided with Insulet.

Fallout and Future Implications

The verdict holds EOFlow, its CEO Jesse Kim, and several other defendants accountable, including EOFlow subsidiary Nephria Bio. The jury did not, however, find former Insulet employee Luis Malave liable.

Massive trade secrets verdicts like this often face appeals. Insulet’s counsel is preparing for this possibility, while simultaneously seeking a permanent injunction and other relief, including the challenge of EOFlow’s patent applications tied to the misappropriated trade secrets.

The case underscores the growing importance of protecting intellectual property, particularly in high-stakes industries like medical devices. It now moves to the equitable phase, where Insulet’s legal team will aim to cement this landmark victory with further relief.

The case is Insulet Corp. v. EOFlow Co. Ltd. et al., case number 1:23-cv-11780, in the U.S. District Court for the District of Massachusetts.