NEW YORK – Point-of-care testing firm NowDiagnostics (NowDx) filed a countersuit Monday in its ongoing legal battle with competitor OraSure alleging breach of contract, theft of a nonpublic device, misappropriation of trade secrets, unfair competition, and other violations of state and federal law.
Filed in the United States District Court for the Eastern District of Pennsylvania, the countersuit is the latest development in a legal battle that began with a lawsuit filed by OraSure against NowDx and two of its employees in November 2024 for misappropriation of trade secrets.
In the original suit, OraSure alleged that two of its former employees — Janean Young and Jody Berry — shared OraSure trade secrets after they left the company to take positions with NowDx, violating both the Federal Defend Trade Secrets Act and the Pennsylvania Uniform Trade Secrets Act. The suit also accuses Young of breach of contract and breach of duty of loyalty, NowDx of unfair competition, and Berry and NowDx of tortious interference with contractual relations.
OraSure asked the court to enjoin the defendants from using or disclosing any of its trade secrets as well as from violating or interfering with contractual obligations to OraSure, to award it damages including "exemplary damages for Defendants' willful and malicious misappropriation of trade secrets," and to award the company the cost of its legal fees.
In its countersuit filed Monday, NowDx alleged that, in fact, OraSure has misappropriated its trade secrets. It claimed that OraSure initiated discussions with NowDx in early 2023 "regarding a potential strategic investment" and that following the end of those discussions, OraSure misappropriated NowDx's "confidential and proprietary information and property … in violation of the same trade secrets laws that it has sued NowDx under."
NowDx also argued that none of the information OraSure claims as trade secrets qualify as trade secrets and that none of this information was acquired by NowDx "as trade secrets through improper means."
In its countersuit, NowDx accused OraSure of violating both the Federal Defend Trade Secrets Act and the Pennsylvania Uniform Trade Secrets Act as well as breach of contract and unfair competition. It asked the court to enjoin OraSure from "further unlawful conduct," including use or disclosure of NowDx trade secrets. It also asked for damages including prejudgment interest and exemplary damages as well as the cost of its legal fees.