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Oakwood Lab’y, LLC v. Thanoo

3rd Circuit

June 8, 2021

In its own words, the Third Circuit used this opinion “to clarify the requirements for pleading a trade secret misappropriation claim under the Defend Trade Secrets Act.” Two pharmaceutical companies engaged in discussions to work together. One company walked away from the deal but hired away the other’s chief scientist. And after having no prior experience with a very nuanced area of pharmacology, once it hired the chief scientist, the company was able to promise investors an incredible expansion in that nuanced area. So, an action was filed, claiming that the fast development resulted from stealing trade secrets. After the District Court dismissed three amended complaints for failure to state a claim, the plaintiff appealed. The Third Circuit reversed in a lengthy opinion in which it tried to resolve ambiguity in how the “plausibility standard” applies to trade secret misappropriation claims.

Scroll down to read the court's full opinion
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