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ITMG Insider Threat Cases – May 19, 2022

Former Coca-Cola Chemist gets 14 years for Stealing $120 Million in Trade Secrets

Xiaorong Shannon Yu, 59, was sentenced by a federal judge in Greeneville, Tennessee, on charges of conspiracy to commit theft of trade secrets, conspiracy to commit economic espionage, possession of stolen trade secrets, economic espionage and wire fraud.

The prosecution said the woman hoped to start a BPA-free coating company in China. She and her corporate partner, the Weihai Jinhong Group, received millions of dollars in grants from the Chinese government to support the new company.

$2B Jury Verdict in Trade Secrets Suit

Earlier this week, a Virginia jury awarded software company Appian Corp. more than $2 billion in damages after finding that competitor software company Pegasystems Inc. had misappropriated its trade secrets. The complaint alleged that Pegasystems engaged in corporate espionage and trade secrets theft to better compete with Appian. Pegasystems hired Youyong Zou, an employee of a government contractor and former developer for Appian. In exchange for payment, Zou provided Pegasystems with copies of Appian’s confidential software and documentation in violation of confidentiality restrictions that barred him from sharing Appian’s trade secrets. In 2020, Appian filed suit against both Pegasystems and Zou.

AbbVie, Alvotech Settle Humira Patent and Trade Secrets Disputes, Teeing up Another Biosim Rollout Next Year

Under the deal, Alvotech could launch its Humira copycat–approval pending–as early as next summer. AbbVie will grant Alvotech a license to its Humira-related patents in the U.S., which take effect on July 1, 2023. Alvotech is on deck to pay royalties to AbbVie and it “acknowledges the validity and enforceability of the licensed patents,” AbbVie said in a release.

The resolution comes after the companies battled in court on two fronts. In a trade secrets lawsuit, AbbVie accused the Icelandic company of recruiting one of its manufacturing executives, who the company says emailed himself sensitive information about Humira’s production just before leaving. In October, a federal judge in Illinois dismissed the case for lack of jurisdiction. AbbVie adopted a new tack in December, pushing the U.S. International Trade Commission (ITC) to bar imports or sales of Alvotech’s biosim in the U.S.

Several Trade Secret Claims Dismissed in Magnolia Soap Lawsuit

In the Tennessee ruling, Judge Jon McCalla dismissed Buff City Soap’s trade secrets claims against Magnolia Soap and Bath and its owner and founder, Magen Bynum.

Last year, Buff City Soap – which is jointly based in Memphis and Dallas – filed a lawsuit against Bynum for misappropriating trade secrets and false advertising. Bynum was a former affiliate of Buff City.

In its lawsuit, Buff City Soap said Bynum had caused irreparable harm to its brand and created an unfair competition. It claimed that Bynum had used trade secrets to make her bath products.

Sales Manager Accused of Embezzling $250k from Las Vegas Car Dealership

On March 19, 2021, the general manager of the dealership filed a report with police about Sims, claiming he investigated Sims for embezzlement. The GM said Sims was taking cash down payments, writing receipts out of a receipt book and keeping the cash, the report said. The customers had receipts for cash paid but computer did not; some cars were sold but marked as unsold in computer, the report said.

Suspect Facing Sentencing in $4.8 million Embezzlement Pleads Guilty in PPP Loan Scheme

Court documents say Co applied for a PPP loan on April 7, 2020, from J.P. Morgan bank for $252,038 but “concealed his ownership interest in Apollo” because he knew it would be denied because of his previous guilty plea. Instead, he submitted the application under his wife’s name, court papers say.

In January 2021, he submitted a separate PPP loan application to Exchange Bank for $278,514 and “fraudulently concealed the fact that he had pleaded guilty to wire fraud and money laundering in the preceding 5 years,” court documents say.

This entry was posted on Thursday, May 19th, 2022 at 10:36 pm. Both comments and pings are currently closed.

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