Reckitt Benckiser sued over premature ejaculation treatment

Absorption Pharmaceuticals, a producer of premature ejaculation treatment, has filed a complaint againstmultinational consumer goods company Reckitt Benckiser over trade secret misappropriation.

The case, which centres on Absorption’s product Promescent (lidocaine), arose after Absorption provided Reckitt with confidential trade secret information “under the guise” that Reckitt was considering acquiring Absorption.

“At Reckitt Benckiser’s request, we shared our proprietary sales, marketing, and technical data as part of ‘due-diligence’ for Reckitt Benckiser’s supposed acquisition,” said Absorption.

The lawsuit was filed on Tuesday, February 21 at the US District Court for the District of Nevada.

In September last year, Reckitt allegedly launched its own competing pre-ejaculation product, Duration, and broke off negotiations to purchase Absorption.

Absorption also accused Reckitt of ensuring that Absorption could not compete with Reckitt’s new product by taking up Absorption’s shelf space at key retailers, as well as having Absorption’s Amazon listing hidden.

Jeff Abraham, CEO of Absorption, said in a statement: “Reckitt Benckiser approached our company in 2014, expressing an interest in buying Absorption Pharmaceuticals.”

He added: “We were shocked when we later learned the whole thing was a sham.”

Absorption is seeking compensatory damages of $150 million and for Reckitt to be enjoined from using any of Absorption’s trade secrets or selling Duration.