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Hogan Lovells’ Houston Office Obtains Multi-Million Jury Verdict for Tech Pharmacy in Breach of Confidentiality and Patent Rights Case

09 October 2017

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Robert Snoddy

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+1 202 637 6826

Houston, 9 October 2017 – Hogan Lovells successfully represented Tech Pharmacy Services, LLC in a multi-million dollar breach of confidentiality and patent rights case. A federal jury unanimously returned two verdicts in favor of plaintiff Tech Pharmacy Services, LLC and against defendants Alixa Rx LLC, Golden Gate National Senior Care, LLC d/b/a Golden LivingCenters, and Fillmore Capital Partners LLC. The Honorable Judge Amos L. Mazzant III presided.

Tech Pharmacy delivers various pharmaceutical services, including remote packaging and dispensing technology for long term care facilities. The case arose out of Tech Pharmacy’s multi-year business arrangement with the defendants, who are involved in the nursing home industry.

Tech Pharmacy accused the defendants of breaching one of the confidentiality agreements between the parties and using confidential information from Tech Pharmacy to set up competitor Defendant Alixa Rx LLC. Tech Pharmacy also sued to enforce its rights under four patents directed to systems and methods for the remote packaging and dispensing of pharmaceuticals in long-term care facilities, such as nursing homes. The patented systems and methods represented a significant improvement over traditional methods of delivery of medication to nursing home patients, including fewer errors, less drug waste, and efficiencies that improved the overall quality of patient care.

Following a three-week trial, the jury returned a verdict in favor of Tech Pharmacy and found that defendants breached their confidentiality agreement with Tech Pharmacy. The jury awarded US$15 million to Tech Pharmacy for damages from the defendants’ breach of contract and an additional US$2 million to Tech Pharmacy for its attorneys’ fees. In addition, the jury rejected the defendants’ claims that Tech Pharmacy’s four patents-in-suit were invalid and that Tech Pharmacy’s claims were barred by various statutes of limitations.

Houston partner Maria Wyckoff Boyce led the Hogan Lovells team, which also included Cristina Espinosa Rodriguez, Jeff Whittle, Jay Yates, and Jennifer Fleury in the Houston office, and Mike Jones of Potter Minton in Tyler, Texas.

About Hogan Lovells

Hogan Lovells is a leading global legal practice providing business-oriented legal advice and high-quality service across its exceptional breadth of practices to clients around the world.

“Hogan Lovells” or the “firm” is an international legal practice that includes Hogan Lovells US LLP and Hogan Lovells International LLP. For more information, see www.hoganlovells.com.

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