Monday, May 25, 2009

Luna Innovations cheats trade secrets, fined more than its worth

trade secrets fraud and lawsuit In a lawsuit similar to Tesla Motors vs. Fisker, Virginia-based Luna Innovations has to pay $36 million to Bay Area company Hansen Medical. The jury found that Luna had broken its agreement to help Hansen develop a robotic catheter and illegally used trade secrets to obtain a contract with Hansen's competitor instead. Hansen was represented by Morrison & Foerster. The jury awarded this large amount, despite audits attesting to the fact that Luna only had a market capitalization of $20 million, and would probably cease to exist after complying with the court's decision. National Law Journal, 27 April, 2009, page 13