The Court of Chancery in Delaware has ruled that a prominent drug company executive infringed on trade secrets and contravened his noncompete agreement, according to a detailed report. The executive, who co-founded a business that was later acquired by Sorrento Therapeutics Inc., reportedly began a side venture during his tenure, leading to allegations of breach.
The executive in question had a long-standing career in the pharmaceutical industry. His infringements occurred during his employment at an enterprise that he helped create and which was subsequently purchased by Sorrento Therapeutics Inc. Crucially, this was a period where the executive had allegedly started another business.
The actions of the executive have been deemed by the Delaware Court of Chancery to be a violation of his noncompete agreement, as well as in breach of trade secrets pertaining to the industry. The court’s ruling is a stark reminder of the potential legal consequences of corporate noncompliance.
More specifics around this case, including the identity of the executive and details about the noncompete agreement, can be found in the report filed by Law360.