Court Rejects Medidata Lawsuit Against Veeva for Lack of Evidence, Blocks Medidata's Moves to Limit Competition and Employee Rights
The United States District Court for the Southern District of New York dismissed Medidata's trade secret misappropriation lawsuit against Veeva Systems (NYSE: VEEV) on July 15, 2022, ruling that Medidata failed to substantiate its claims. This ruling is pivotal for protecting employee rights and promoting competition in the life sciences sector. The court's decision highlighted that Medidata's lawsuit was an attempt to stifle innovation and intimidate employees. The dismissed suit has reportedly cost both companies about $40 million over five years.
- Court ruling dismisses baseless lawsuit against Veeva, reinforcing the company's position in the industry.
- The decision supports employee rights and promotes fair competition in the life sciences sector.
- Rejection of the lawsuit prevents Medidata from limiting Veeva's innovation capabilities.
- The lawsuit caused approximately $40 million in combined costs to Veeva and Medidata.
Major win for employee rights and the life sciences industry as court ends Medidata's moves to stifle innovation and free flow of talent
NEW YORK and PLEASANTON, Calif. , July 18, 2022 /PRNewswire/ -- The United States District Court for the Southern District of New York has dismissed the trade secret misappropriation lawsuit filed by Medidata, a Dassault Systèmes company, against Veeva Systems (NYSE: VEEV). Midway through the jury trial, the judge ended the proceedings and rejected the suit, finding that Medidata was unable to substantiate its claims against Veeva. The ruling is an important move in the protection of employee and customer rights as the case represented an attempt to limit competition and the free flow of talent with unfounded trade secret claims.
The Honorable Jed Rakoff, federal district judge since 1996 and adjunct professor at Columbia Law School and NYU Law School, noted in his July 15 ruling:
"…to the extent that [Medidata's] case rests on allegations regarding specific trade secrets that were misappropriated, they have failed to make their case." He went on to state, "I think a more general problem with [Medidata's] case is they seem to think that just about anything in the world can be a trade secret. And that, of course, would mean that you could never hire away an employee from another company because anything they said — one word out of their mouth — would indirectly reveal something they had learned at their prior employment…and both the statutes here involved, and also legislative history make clear that that was not the intent of the legislators..."
Despite a lack of evidence to support a case, Medidata filed the trade secret suit in 2017 against Veeva and five former Medidata employees in an attempt to block Veeva from innovating in the clinical data management market and intimidate Medidata employees to prevent them from joining Veeva, the emerging leader.
Medidata had many opportunities to drop the baseless suit over the past five years – including after the 2019 acquisition by Dassault Systèmes – but chose not to, causing needless harm to many. The case caused confusion to mutual customers, harmed employees on both sides, and cost the two sides combined an estimated
"We are pleased the court dismissed Medidata's suit and stood up for the rights of employees and customers in the face of an abuse of the legal system, intimidation of employees, and an attempt to limit companies' access to innovation," said Peter Gassner, Veeva CEO. "Baseless lawsuits like Medidata's harm individuals, customers, and the industry overall. I hope this ruling encourages others to focus their energy on innovation and employee success rather than unnecessary and harmful litigation."
Veeva has been a long-standing supporter of employee rights and the movement to ban the use of non-compete agreements. Medidata's abusive lawsuit further underscores the need for greater protection of worker rights to freely change employers, which promotes fair competition and economic growth.
Additional Information
To learn more about Veeva's position on non-compete agreements, visit veeva.com/noncompetes.
For more on Veeva's Public Benefit Corporation (PBC) status, visit veeva.com/pbc.
Connect with Veeva on LinkedIn: linkedin.com/company/veeva-systems
Follow @veevasystems on Twitter: twitter.com/veevasystems
About Veeva Systems
Veeva is the global leader in cloud software for the life sciences industry. Committed to innovation, product excellence, and customer success, Veeva serves more than 1,000 customers, ranging from the world's largest pharmaceutical companies to emerging biotechs. As a Public Benefit Corporation, Veeva is committed to balancing the interests of all stakeholders, including customers, employees, shareholders, and the industries it serves. For more information, visit veeva.com.
Contact:
Maria Scurry
Veeva Systems Inc.
781-366-7617
pr@veeva.com
View original content to download multimedia:https://www.prnewswire.com/news-releases/court-rejects-medidata-lawsuit-against-veeva-for-lack-of-evidence-blocks-medidatas-moves-to-limit-competition-and-employee-rights-301587978.html
SOURCE Veeva Systems
FAQ
What was the outcome of the lawsuit Medidata filed against Veeva Systems?
How much did the lawsuit cost Veeva and Medidata?
What implications does the court ruling have for Veeva Systems?
When was the lawsuit ruled upon?
What market does Veeva Systems operate in?
