On December 3, 2024, a U.S District Court for the District of Massachusetts jury awarded Plaintiff Insulet Corporation $452 million in compensatory and punitive damages after finding Defendants willfully misappropriated Insulet’s trade secrets. Insulet Corp. v. EOFlow Co. Ltd., et al., Case No. 1:23-cv-11780 (D. Mass.)

Insulet is a manufacturer of tubeless insulin pump patches with its Omnipod brand of products. Insulet Omnipod products have been FDA approved since 2005. Defendant is a competitor of Insulet, manufacturing its own line of insulin pump patches, first with the EOPatch in 2011 and then the EOPatch 2 in 2018. 

In its complaint, Insulet claimed that the original patch Defendant developed starting in 2011 employed “different pumping technology to deliver insulin,” and “early prototypes of [Defendant’s] product … looked nothing like Insulet’s Omnipod products.” But, in 2018, only two years after Defendant hired multiple former Insulet senior executives and other employees and entered into a joint development and collaboration contract with Insulet’s primary contract manufacturer, Defendant launched a redesigned version of its product that allegedly was nearly identical in look and function to Insulet’s Omnipod products.

Insulet alleged that through these actions, Defendants willfully and maliciously misappropriated Insulet’s trade secrets. Specifically, the former employees that had access to and knowledge of Insulet’s trade secrets as a result of their positions at Insulet allegedly stole Insulet’s trade secrets and Defendant allegedly misappropriated them by hiring those former employees. Doing so allegedly allowed “[Defendant] to use the Insulet Trade Secrets to design the EOPatch as an Omnipod clone and implement the manufacturing and commercialization processes for the EOPatch that each [Insulet employee] knew would work as it did for the Omnipod product.” According to Insulet, this was further compounded by Defendant’s contract with Insulet’s primary contract manufacturer as the contract manufacturer had access to Insulet’s design specifications which further allowed Defendant to copy the Omnipod products.

After a four-week trial, the jury found that all but one defendant misappropriated Insulet’s trade secrets, and at least some of the misappropriation was willful and malicious. It then awarded Insulet $170 million in compensatory damages and an additional $282 million in exemplary damages for willful and malicious misappropriation, for a total damages award of $452 million.

The sheer size of this award is in line with a recent trend we have seen in the trade secret misappropriation arena. 

Photo of Steven J. Pearlman Steven J. Pearlman

Steven J. Pearlman is a partner in the Labor & Employment Law Department, where he is Head of the Restrictive Covenants, Trade Secrets & Unfair Competition Group and Co-Head of the Whistleblowing & Retaliation Group.

Employment, Restrictive Covenant & Trade Secret, and Whistleblower

Steven J. Pearlman is a partner in the Labor & Employment Law Department, where he is Head of the Restrictive Covenants, Trade Secrets & Unfair Competition Group and Co-Head of the Whistleblowing & Retaliation Group.

Employment, Restrictive Covenant & Trade Secret, and Whistleblower Practice. Steven’s national practice focuses on defending companies in federal and state courts and in arbitration fora against the full spectrum of employment-related claims, including claims of executives; restrictive covenant violations; employee raiding; theft of trade secrets; whistleblower retaliation under the Sarbanes-Oxley Act, the Dodd-Frank Act and similar state laws; and wage-and-hour violations, including class, collective and PAGA actions.

Steven has successfully handled trials in multiple jurisdictions; prevailed in seeking and defending against applications for temporary restraining orders and preliminary injunctions; defended one of the largest Illinois-only class actions in the history of the federal courts in Illinois (over 90k putative class members); and prevailed following his oral arguments before federal and state appellate courts. He brings his litigation experience (beginning in 1998) to bear in counseling clients to minimize risk and avoid or prepare for success in litigation.

Investigations. Reporting to boards of directors, their audit committees, CEOs and in-house counsel, Steven conducts sensitive investigations and has the unusual experience of testifying in federal court in connection with investigations. His investigations have involved complaints of sexual harassment involving C-suite officers; systemic violations of employment laws and company policies; and fraud, compliance failures and unethical conduct.

Thought Leadership and Accolades. Steven was named Lawyer of the Year for Chicago Labor & Employment Litigation in the 2023 edition of The Best Lawyers in America. He is a Fellow of the College of Labor and Employment Lawyers. Chambers has reported:

  • Steven is “one of the best in the country and has a lot of experience”;
  • Steven is as an “outstanding lawyer” who is “very sharp and very responsive,” a “strong advocate,” and an “expert in his field”;
  • He is thoughtful, attentive and demonstrates an acute understanding of matters top of mind for business-minded general counsel; and
  • “He is someone who can navigate the twists and turns of litigation without difficulty.”

Steven was 1 of 12 individuals selected by Compliance Week as a “Top Mind.” Earlier in his career, he was 1 of 5 U.S. lawyers selected by Law360 as a ”Rising Star Under 40” in the area of employment law and 1 of “40 Illinois Attorneys Under Forty to Watch” selected by Law Bulletin Publishing Company. Steven is a U.S. Library of Congress Burton Award Winner for “Distinguished Legal Writing.”

Steven was appointed to Law360’s Employment Editorial Advisory Board and selected as a Contributor to Forbes.com. He has appeared on Bloomberg News (television and radio) and Yahoo! Finance, and is often quoted in leading publications such as The Wall Street Journal. The U.S. Chamber of Commerce has engaged Steven to serve as lead counsel on amicus briefs to the U.S. Supreme Court and federal circuit courts of appeal.

In 2024, Steven received the Excellence in Pro Bono Service Award from the United States District Court for the Northern District of Illinois and the Chicago Chapter of the Federal Bar Association.

Photo of Nicole Sockett Nicole Sockett

Nicole Sockett is an associate in the Litigation Department.

Nicole earned her J.D. from Columbia Law School and her B.S. in Biology from Haverford College. While at Columbia, Nicole interned and was a teaching assistant at Volunteer Lawyers for the Arts, helping to…

Nicole Sockett is an associate in the Litigation Department.

Nicole earned her J.D. from Columbia Law School and her B.S. in Biology from Haverford College. While at Columbia, Nicole interned and was a teaching assistant at Volunteer Lawyers for the Arts, helping to provide pro bono legal services to local artists and arts organizations. She was also a member of the Environmental Law Clinic and American Intellectual Property Law Association Moot Court.