Court Dismisses Medidata’s Lawsuit Against Veeva for Lack of Evidence, Blocks Medidata’s Actions to Limit Competition and Employee Rights

Major Victory for Employee Rights and the Life Sciences Industry as Court Ends Medidata’s Measures to Stifle Innovation and the Free Flow of Talent

NEW YORK and PLEASANTON, Calif. , July 182022 /PRNewswire/ — The United States District Court for the Southern District of New York dismissed the trade secret misappropriation lawsuit brought by Medidata, a Dassault Systemes company, against Veeva Systems (NYSE: VEEV). Midway through the jury trial, the judge terminated the proceedings and dismissed the lawsuit, finding that Medidata was unable to substantiate its claims against Veeva. The decision is an important step in protecting the rights of employees and customers, as the case represented an attempt to limit competition and the free flow of talent with unsubstantiated claims of trade secrecy.

The Honorable Jed Rakoff, federal district judge since 1996 and adjunct professor at Columbia Law School and New York University School of Lawnoted in his July 15th decision:

“…to the extent that [Medidata’s] the case rests on allegations about specific trade secrets that were misappropriated, they failed to make their case. He went on to say, “I think a more general problem with [Medidata’s] case is that they seem to think anything in the world can be a trade secret. And that, of course, would mean you could never hire an employee from another company because anything they said – a word from their mouth – would indirectly reveal something they had learned in their previous job. .. and the two laws concerned, and also the legislative history clearly show that this was not the intention of the legislators…”

Despite a lack of evidence to support a case, Medidata filed a trade secret lawsuit in 2017 against Veeva and five former Medidata employees in an effort to prevent Veeva from innovating in the data management market. clinics and intimidate Medidata employees from joining Veeva, the emerging leader.

Medidata had many opportunities to drop the baseless lawsuit over the past five years — including after the 2019 acquisition by Dassault Systèmes — but chose not to, causing unnecessary harm to many. The case confused joint customers, harmed employees on both sides, and cost both parties combined approximately $40 million.

“We are pleased that the court dismissed Medidata’s lawsuit and defended 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 information. ‘innovation’, said Peter Gassner, CEO of Veeva. “Baseless lawsuits like Medidata’s harm individuals, customers and the industry as a whole. I hope this decision will encourage others to focus their energy on innovation and employee success rather than unnecessary and harmful litigation.”

Veeva is a longtime 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 workers’ rights to freely change employers, which promotes fair competition and economic growth.

Further information
To learn more about Veeva’s position on non-compete agreements, visit veeva.com/noncompete.
To learn more about 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 company, 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
[email protected]

SOURCE Veeva Systems

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