Insulet wins $452M in lawsuit against rivals over medical device trade secrets
Insulet Corporation, a medical device company known for its tubeless insulin pump technology, has been awarded $452 million in damages after accusing competitors of the “disclosure and misappropriation of trade secrets.”
A jury announced the ruling after a four-week trial in the U.S. District Court of the District of Massachusetts.
In its lawsuit, Insulet accused multiple parties—including Jesse J. Kim, then the CEO of healthcare technology company EOFlow—of “knowingly, willfully and maliciously” receiving trade secrets related to Insulet’s insulin pump technology as an attempt to bring a “clone product” to market. Additional context about the case is available here.
The damages break down into $170 in compensatory damages from EOFlow and an additional $282 million in exemplary damages.
“We are extremely pleased with the jury’s verdict, which validates our commitment to protecting our technology and defending our intellectual property against misappropriation and infringement,” Jim Hollingshead, Insulet’s president and CEO, said in a statement. “We will not only enforce our patents, but also zealously protect our valuable trade secrets, in which we’ve invested heavily to improve the lives of people with diabetes.”
Additional context on Insulet and EOFlow
In May 2023, Medtronic agreed to buy EOFlow for $738 million. Months later, however, Medtronic terminated that agreement. There was speculation at the time that Insulet’s accusations may have been at least part of the reason for Medtronic’s decision, but the company never commented either way. It did, however, say terminating the deal was a result of “multiple breaches.”
“When we announced our intent to acquire EOFlow, we shared that we’re taking multiple shots on goal to help address unmet patient needs,” Medtronic told Cardiovascular Business at the time. “We continue to advance our organic efforts and we remain committed to bringing a patch pump to market that integrates our most advanced continuous glucose monitoring platform and clinically proven Meal Detection Technology algorithm.”
Medtronic quickly moved forward with its own diabetes technology. In fact, the company recently secured U.S. Food and Drug Administration approval for its InPen smartphone app and announced the launch of a new Smart MDI System.
Michael has more than 18 years of experience as a professional writer and editor. He has written at length about cardiology, radiology, artificial intelligence and other key healthcare topics.