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1 June 2023Big PharmaSarah Speight

Abbott sues former employee for alleged trade secrets theft

Ex-scientist faces lawsuit for allegedly downloading thousands of files before leaving for a rival | Abbott seeks damages for ‘flagrant misconduct’ brought to its attention by successive employer.

Abbott has accused a former employee of stealing trade secrets relating to its ‘ Ensure’ consumer nutrition product range.

The employee worked for Abbott in Illinois from 2012 to 2018, becoming a scientist for the company in 2017 in its Nutrition Division.

He resigned in May 2018, leaving to work for a rival to Abbott, Better Nutritionals—initially as director of research and development, and later becoming chief operating officer.

But before leaving Abbott, he “secretly downloaded thousands of Abbott confidential documents…and he now may be peddling Abbott’s trade secrets to Abbott’s actual and potential competitors”, said the healthcare firm in its complaint filed on May 30 at the US District Court for the Northern District of Illinois, Eastern Division.

Abbott alleges that the scientist mass-downloaded approximately 3,000 of its documents to a USB drive, including ingredient lists that contained the formulations for actual or contemplated Abbott Nutrition products, as well as proprietary information related to manufacturers, vendors and ingredients.

The firm says that while the man was an employee, he was responsible for the research and development of each product he was assigned, from conception to commercialisation. This remit included liquid, powder, and edible nutrition products.

Abbott’s ‘Ensure’ product line includes an Ensure Original nutrition powder and an Ensure Original nutrition shake. Formulations within these products disclose the precise quantity and characteristics of each component in a product, explained Abbott, adding that these trade secrets are “critical” to the products’ success.

According to the lawsuit, Better Nutritionals sacked the man “for cause” in December 2022, but then discovered two USB drives containing Abbott’s confidential information while clearing his office.

The California-based rival informed Abbott of the discovery in March 2023, also relaying that the scientist had begun working as a self-employed consultant to companies that make and sell nutrition products.

Abbott claims that the former employee’s alleged disclosure of its proprietary product formulations would cause the firm “substantial harm”.

It said that “companies could use the information stolen…to quickly and cheaply develop products in competition with Abbott’s current portfolio of nutritional products.”

Abbott now seeks recovery of the allegedly stolen data from the former staffer, an injunction, and compensation “for all damages caused by his flagrant misconduct.”

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More on this story

Big Pharma
5 July 2023   With competition, employee mobility and chatbots all on the rise, protecting IP as trade secrets has never been more important for life sciences firms, says Anthony Fitzpatrick of Duane Morris.
Americas
30 March 2023   H&H Wholesale Services found to have committed ‘fraud on the court’ | Final amount includes attorneys’ fees and costs.
Big Pharma
16 June 2022   Biotech company Glycosyn has sued Abbott Laboratories for allegedly infringing its patented method for manufacturing a key ingredient in infant formula milk, found in three of Abbott’s infant formula products under the Similac brand.