WebMD Can’t Slip Trade Secrets Suit From Argentinian Rival

Barry Werbin, counsel in Herrick's Intellectual Property Group, was quoted in Law360 in an article covering an important decision on behalf of Herrick clients, the Medcenter Group and its affiliates, in a case they filed in 2020 against WebMD and its affiliates for trade secret misappropriation and breach of an NDA.  

On March 29, 2021, Southern District Judge Andrew L. Carter denied the WebMD defendants’ motion to dismiss our clients’ complaint, ruling that our clients, South American providers of pharmaceutical marketing programs to physicians, can bring Defend Trade Secrets Act (DTSA) civil claims against defendants in the U.S., because some of the purported wrongful conduct occurred in the U.S. and the DTSA extends extraterritorially in such cases.  The judge also rejected defendants’ arguments that our clients’ trade secret claims are untimely; that neither the DTSA nor New York common law apply because the misappropriation occurred in South America; and that the NDA contract claim fails to allege a breach or damages. 

Barry said in a statement Tuesday that his client is "very pleased with the court's well-reasoned opinion."

"In particular, the decision confirms that the extraterritorial reach of the Defend Trade Secrets Act applies to civil actions and not just criminal proceedings for trade secret misappropriation, in accordance with most other district courts that have addressed this issue," Barry said.

The case is MedCenter Holdings Inc. et al. v. WebMD Health Corp. et al., case number 1:20-cv-00053, in the U.S. District Court for the Southern District of New York.

Read the full article in Law360 here. Access may require a subscription.