throbber
Case 2:17-cv-08419-RGK-PLA Document 39 Filed 11/20/17 Page 1 of 76 Page ID #:892
`
``
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`Timothy Devlin (to be admitted pro hac vice)
`James Gorman III (to be admitted pro hac vice)
`Devlin Law Firm LLC
`1306 N. Broom Street, 1st Floor
`Wilmington, DE 19806
`Telephone: (302) 449-9010
`Facsimile: (302) 353-4251
`Email: tdevlin@devlinlawfirm.com
` jgorman@devlinlawfirm.com
`
`Greg Gardella (to be admitted pro hac vice)
`Gardella Grace P.A.
`455 Massachusetts Ave, NW, Suite 507
`Washington, DC 20001
`Telephone: 703-556-9600
`Facsimile: 703-740-4541
`Email: ggardella@gardellagrace.com
`
`Seth W. Wiener (California State Bar No. 203747)
`Law Offices of Seth W. Wiener
`9107 Wilshire Boulevard, Suite 450
`Beverly Hills, CA 90210
`Telephone: (925) 487-5607
`Email: sethwiener@yahoo.com
`
`Attorneys for Plaintiff
`FULFILLIUM, INC.
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`AMENDED COMPLAINT FOR TRADE SECRET MISAPPROPRIATION AND PATENT INFRINGEMENT
`AMENDED COMPLAINT FOR TRADE SECRET MISAPPROPRIATION AND PATENT INFRINGEMENT
`PAGE 1
`
`
`
`
`
`
`
`RESHAPE 1021
`
`

`

`Case 2:17-cv-08419-RGK-PLA Document 39 Filed 11/20/17 Page 2 of 76 Page ID #:893
`
``
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`UNITED STATES DISTRICT COURT
`CENTRAL DISTRICT OF CALIFORNIA
`
`
`
`Case No. 2:17-cv-08419
`
`FULFILLIUM, INC.,
`
`Plaintiff,
`
`
`vs.
`
`RESHAPE MEDICAL, INC.,
`
`Defendant.
`
`AMENDED COMPLAINT FOR
`TRADE SECRET
`MISAPPROPRIATION AND
`PATENT INFRINGEMENT
`
`
`DEMAND FOR JURY TRIAL
`
`
`
`
`
`AMENDED COMPLAINT FOR TRADE SECRET MISAPPROPRIATION AND PATENT INFRINGEMENT
`AMENDED COMPLAINT FOR TRADE SECRET MISAPPROPRIATION AND PATENT INFRINGEMENT
`PAGE 2
`
`
`
`
`
`
`
`RESHAPE 1021
`
`

`

`Case 2:17-cv-08419-RGK-PLA Document 39 Filed 11/20/17 Page 3 of 76 Page ID #:894
`
``
`
`Plaintiff Fulfillium, Inc. (“Fulfillium” or “Plaintiff”), for its
`
`Complaint against ReShape Medical, Inc. (“ReShape” or “Defendant”)
`alleges the following:
`
`NATURE OF THE ACTION
`1.
`This is an action for trade secret misappropriation and patent
`infringement arising under the Uniform Trade Secrets Act, CA. Civ. Code §3426
`et seq. and/or Mass. Gen. Laws ch. 93, § 42-42A and the Patent Laws of the
`United States, 35 U.S.C. § 1 et seq.
`THE PARTIES
`2.
`Fulfillium is a corporation organized and existing under the laws of
`the State of Delaware, with an address at 1136 Orchard Avenue, Napa, California
`94558.
`3.
`On information and belief, ReShape is a corporation organized and
`existing under the laws of the State of Delaware with its principal place of
`business at 100 Calle Iglesia, San Clemente, California 92672. ReShape can be
`served via its registered agent Corporation Service Company, 2711 Centerville
`Road, Suite 400, Wilmington, Delaware 19808.
`JURISDICTION AND VENUE
`4.
` Upon information and belief, Defendant sells and offers to sell
`products and services throughout the United States, including in this judicial
`district, and introduces products and services into the stream of commerce that
`incorporate infringing technology knowing that they would be sold in this judicial
`district and elsewhere in the United States.
`5.
`This is an action for trade secret misappropriation and patent
`infringement arising under the Uniform Trade Secrets Act, CA. Civ. Code §3426
`et seq. and/or Mass. Gen. Laws ch. 93, § 42-42A, and the Patent Laws of the
`United States, Title 35 of the United States Code, respectively.
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`AMENDED COMPLAINT FOR TRADE SECRET MISAPPROPRIATION AND PATENT INFRINGEMENT
`AMENDED COMPLAINT FOR TRADE SECRET MISAPPROPRIATION AND PATENT INFRINGEMENT
`PAGE 3
`
`
`
`
`
`
`
`RESHAPE 1021
`
`

`

`Case 2:17-cv-08419-RGK-PLA Document 39 Filed 11/20/17 Page 4 of 76 Page ID #:895
`
``
`
`6.
`This Court has subject matter jurisdiction under 28 U.S.C. §§ 1331
`and 1338(a).
`7.
`Venue is proper in this judicial district under 28 U.S.C. §§ 1391(b),
`(c), (d) and/or 1400(b). On information and belief, Defendant conducts business
`in this district, the claims alleged in this Complaint arise in this District, and acts
`of infringement have taken place and are continuing to take place in this District.
`8.
`On information and belief, Defendant is subject to this Court’s
`general and specific personal jurisdiction because Defendant has sufficient
`minimum contacts within the State of California and this District, pursuant to due
`process and/or the California Long Arm Statute, because Defendant purposefully
`availed itself of the privileges of conducting business in the State of California
`and in this District, because Defendant regularly conducts and solicits business
`within the State of California and within this District, and because Fulfillium’s
`causes of action arise directly from Defendant’s business contacts and other
`activities in the State of California and this District.
`GENERAL ALLEGATIONS
`9.
`Dr. Richard D. Y. Chen was born in Taiwan in 1958 and emigrated to
`the United States in 1972. Dr. Chen obtained an undergraduate degree in
`biochemistry and molecular biology from Harvard University in 1979. Dr. Chen
`next attended medical school at Northwestern University and obtained an M.D. in
`1983. Dr. Chen performed his internship in general surgery and continued in his
`residency in neurosurgery at the Johns Hopkins Hospital in the 1980s.
`10. Dr. Chen obtained a Master’s Degree in Business Administration
`from Stanford University in 1990. Following matriculation, Dr. Chen began
`working in the investment banking department at Morgan Stanley & Company.
`Thereafter, Dr. Chen continued working in financial services making investments
`in and assisting start-up companies primarily in the technology sector.
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`AMENDED COMPLAINT FOR TRADE SECRET MISAPPROPRIATION AND PATENT INFRINGEMENT
`AMENDED COMPLAINT FOR TRADE SECRET MISAPPROPRIATION AND PATENT INFRINGEMENT
`PAGE 4
`
`
`
`
`
`
`
`RESHAPE 1021
`
`

`

`Case 2:17-cv-08419-RGK-PLA Document 39 Filed 11/20/17 Page 5 of 76 Page ID #:896
`
``
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`11.
`In 1999, Dr. Chen started conceiving innovative ideas of his own by
`combining his experiences at the crossroads of medicine and technology. After
`the tragic events of September 11, 2001, prospects in the technology investment
`markets began to slow. Dr. Chen decided to focus on developing and
`commercializing these ideas into entrepreneurial ventures.
`12. Dr. Chen conceived of a bariatric medical device and procedure
`whereby a novel balloon device is delivered endoscopically to reduce the interior
`volume of the stomach and impede the flow of ingested food and thereby
`effectively reduce the calories consumed. To mitigate potentially fatal
`consequences of premature rupture and migration, which were significant
`deficiencies in earlier devices within this class, safety was provided by two or
`more chambers filled with fluids.
`13. Because obesity is a complex, multifactorial disease, Dr. Chen
`invested at least two years’ time i) analyzing critically over a thousand scientific
`papers relating from the genetic basis of obesity to interventions in clinical
`therapy to the psychosocial impact of the disease, and ii) attending scientific
`research conferences on the basic underpinnings of the field and major medical
`conferences in the United States and overseas to learn about the state of the art in
`therapy and how the various medical specialties played their role in its treatment.
`Gaining insight from these activities, Dr. Chen further refined key elements of his
`idea and its implementation into everyday medical practice.
`14. Dr. Chen then presented his idea, on a confidential basis, to leading
`researchers and clinicians in the field, including the former presidents of the
`American Gastroenterology Association, the American Society of Bariatric
`Surgeons and its overseas counterpart, the International Federation for the Surgery
`of Obesity. Practically everyone he contacted responded favorably with the
`willingness to commit to participate further in developing the medical device and
`procedure. Each of these disclosures was subject to a mutual understanding and
`
`AMENDED COMPLAINT FOR TRADE SECRET MISAPPROPRIATION AND PATENT INFRINGEMENT
`AMENDED COMPLAINT FOR TRADE SECRET MISAPPROPRIATION AND PATENT INFRINGEMENT
`PAGE 5
`
`
`
`
`
`
`
`RESHAPE 1021
`
`

`

`Case 2:17-cv-08419-RGK-PLA Document 39 Filed 11/20/17 Page 6 of 76 Page ID #:897
`
``
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`obligation of confidentiality. Only individuals who were under written
`obligations of confidentiality were provided information regarding Fulfillium’s
`trade secrets.
`15. Dr. Chen contributed funds and his intellectual property to form
`Fulfillium, Inc. in 2004 and filed his first provisional patent application on May 3,
`2004. Dr. Chen raised seed capital from friends and family to take the idea to the
`next stage of development. Dr. Chen attended trade shows in medical device
`manufacture. Dr. Chen engaged consultants including engineers to help develop
`the device and former regulators to explore the pathway for FDA approval.
`Prototypes were constructed and animal lab facilities were evaluated.
`16. Dr. Chen next embarked on raising venture capital to prove the
`concept. Given his past experience in the venture business, Dr. Chen adopted a
`set of practices for disclosure to protect the intellectual properties he developed.
`Under this set of practices, Dr. Chen did not disclose any trade secret information
`to anyone unless he had confirmed an agreement that it would be kept confidential.
`On January 25, 2005, Dr. Chen spoke with Dr. Samuel Wu, M.D. of SV Life
`Sciences to discuss Fulfillium’s technology on a confidential basis. All parties
`confirmed that the conversations regarding Dr. Chen’s ideas were subject to an
`oral agreement of confidentiality. On February 10, 2005, Dr. Chen attended a
`meeting including the SV Life Sciences team in Boston led by partner David
`Milne via a videoconference call hosted at the SV Life Sciences offices at 950
`Tower Lane, Ste. 1535, Foster City, California. Dr. Chen understood the meeting
`to be confidential and, consistent with that, Dr. Chen’s presentation slides were all
`marked “STRICTLY CONFIDENTIAL.” All parties confirmed that the
`conversations surrounding this meeting were subject to an oral agreement of
`confidentiality.
`17.
`In addition, SV Life Sciences representatives had due diligence calls
`with various Fulfillium scientific advisors. These due diligence phone calls were
`
`AMENDED COMPLAINT FOR TRADE SECRET MISAPPROPRIATION AND PATENT INFRINGEMENT
`AMENDED COMPLAINT FOR TRADE SECRET MISAPPROPRIATION AND PATENT INFRINGEMENT
`PAGE 6
`
`
`
`
`
`
`
`RESHAPE 1021
`
`

`

`Case 2:17-cv-08419-RGK-PLA Document 39 Filed 11/20/17 Page 7 of 76 Page ID #:898
`
``
`
`for expert validation of Fulfillium’s therapeutic concept and did not include
`presentations of Fulfillium’s product development plans or trade secrets.
`18. Dr. Wu informed Dr. Chen that the due diligence was “looking good”
`and that SV Life Sciences was contemplating a term sheet. Dr. Wu noted that
`although he, in California, had taken a point person role in the development of the
`deal, SV Life Sciences’ medical device group was headquartered in Boston and he
`was not part of the group. Thus, going forward SV Life Sciences would prefer to
`partner with a venture capital firm in California who could more effectively
`monitor Fulfillium’s activities.
`19. Among other venture capital firms, Dr. Chen separately gave a
`confidential presentation to Sprout Partners. Dr. Chen delivered the presentation
`to Sprout partners Jeani Delagardelle at Sprout’s Menlo Park office and Andrew
`Firlik, M.D. via conference call on March 4, 2005. Sprout and Fulfillium
`understood that the conversations surrounding this presentation were confidential
`because the parties previously signed and executed a written non-disclosure
`agreement. Ms. Delagardelle later invited Dr. Chen to attend as Sprout’s guest at
`the annual American Heart Association luncheon, a key event in the industry. Ms.
`Delagardelle took on a lead role by referring another venture capital firm as a
`potential co-investor. Dr. Chen eventually made an introduction between SV Life
`Sciences and Sprout.
`20. During the foregoing meetings and communications with SV Life
`Sciences and Sprout, Dr. Chen provided confidential and detailed disclosures of
`Fulfillium’s preferred clinical trial design and regulatory approval strategy. All of
`the relevant parties to the foregoing meetings and communications understood the
`conversations that occurred were subject to either oral or written agreements of
`confidentiality.
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`AMENDED COMPLAINT FOR TRADE SECRET MISAPPROPRIATION AND PATENT INFRINGEMENT
`AMENDED COMPLAINT FOR TRADE SECRET MISAPPROPRIATION AND PATENT INFRINGEMENT
`PAGE 7
`
`
`
`
`
`
`
`RESHAPE 1021
`
`

`

`Case 2:17-cv-08419-RGK-PLA Document 39 Filed 11/20/17 Page 8 of 76 Page ID #:899
`
``
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`21. On information and belief, neither SV Life Sciences nor Sprout had
`any substantial previous knowledge or experience with balloon treatments for
`obesity.
`22. On information and belief, all of SV Life Sciences’ and Sprout’s
`knowledge concerning Dr. Chen’s novel balloon designs for obesity as of the
`Spring of 2005 was supplied by Dr. Chen.
`23.
`In the Spring of 2005, Ms. Delagardelle indicated that the due
`diligence process would be delayed somewhat due to the fact that the healthcare
`group principals of Sprout were forming a new firm, New Leaf Venture Partners.
`Ms. Delagardelle asked Dr. Chen if this would pose a problem. Dr. Chen
`responded that time was of the essence but a short delay under the circumstances
`would be manageable.
`24. Meanwhile, Dr. Chen continued to interface with SV Life Sciences.
`SV Life Sciences arranged for Dr. Chen to meet George Wallace (venture partner
`for SV Life Sciences) on May 16, 2005 at a restaurant in Chicago. During the
`meeting Mr. Wallace proposed terms and conditions under which he would work
`with Fulfillium. In addition to other compensation, Mr. Wallace demanded
`greater than 25% stake in Fulfillium after the first round of financing by venture
`capital firms. Given the ownership dilution that typically occurs during the first
`round of financing, Mr. Wallace was effectively demanding majority ownership of
`Fulfillium. Dr. Chen noted that Mr. Wallace’s requested equity share was more
`than two to four times greater than that typically allotted to a CEO brought in to
`run a company at Fulfillium’s stage of development. Mr. Wallace offered no
`justification other than to say that he needed to compensate his business partner, a
`practicing radiologist in Minnesota, and would not proceed without including his
`business partner. Dr. Chen never disclosed the trade secrets to Mr. Wallace.
`25. Thereafter, no further discussion took place between Mr. Wallace and
`Dr. Chen. Instead, unbeknownst to Dr. Chen, decision makers in SV Life
`
`AMENDED COMPLAINT FOR TRADE SECRET MISAPPROPRIATION AND PATENT INFRINGEMENT
`AMENDED COMPLAINT FOR TRADE SECRET MISAPPROPRIATION AND PATENT INFRINGEMENT
`PAGE 8
`
`
`
`
`
`
`
`RESHAPE 1021
`
`

`

`Case 2:17-cv-08419-RGK-PLA Document 39 Filed 11/20/17 Page 9 of 76 Page ID #:900
`
``
`
`Sciences sought to launch a new company with Mr. Wallace as the CEO based on
`Fulfillium’s technology and trade secrets, which were misappropriated despite the
`repeated oral agreements of confidentiality with SV Life Sciences. In the early
`summer of 2005, Ms. Delagardelle of New Leaf sent a brief email to Dr. Chen
`advising that New Leaf was considering a deal that SV Life Sciences was
`proposing. Dr. Chen presumed that SV Life Sciences was proposing bringing to
`market an alternative solution that would be different from the technology
`developed and confidentially disclosed by Dr. Chen. Dr. Chen would later
`discover that SV Life Sciences’ venture headed by Mr. Wallace was premised not
`on some alternative solution but rather Fulfillium’s technology and trade secrets.
`26. On information and belief, Mr. Wallace’s new company, called
`Abdominis, Inc., was formed during the summer of 2005 and was funded by New
`Leaf and SV Life Sciences. Upon information and belief, both SV Life Sciences
`and New Leaf not only provided capital, but as typical early stage venture capital
`firms, provided direct guidance in the company’s development and controlled the
`operations of the company through their board membership.
`27. Abdominis was subsequently renamed ReShape Medical, Inc.
`Hereafter, “Reshape Medical” will refer to Abdominis, Inc. and its successor-in-
`interest Reshape Medical, Inc.
`28. As is typical for a medical start-up company, ReShape Medical
`operated in “stealth mode” during development. ReShape Medical started pivotal
`clinical trials in 2012 and applied for FDA approval in 2014. The FDA granted
`Pre-Marketing Approval to the ReShape Duo™ device and treatment method on
`July 28, 2015.
`29. When ReShape Medical emerged from stealth mode and began
`commercial operations, Dr. Chen learned that ReShape Medical had copied his
`trade secrets, namely, his entire clinical trial “playbook.” ReShape Medical
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`AMENDED COMPLAINT FOR TRADE SECRET MISAPPROPRIATION AND PATENT INFRINGEMENT
`AMENDED COMPLAINT FOR TRADE SECRET MISAPPROPRIATION AND PATENT INFRINGEMENT
`PAGE 9
`
`
`
`
`
`
`
`RESHAPE 1021
`
`

`

`Case 2:17-cv-08419-RGK-PLA Document 39 Filed 11/20/17 Page 10 of 76 Page ID #:901
`
``
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`copied, among other things, Dr. Chen’s clinical trial design and his selection of
`the principal investigator.
`30. On information and belief, the board of directors and officers of
`ReShape Medical knew or had reason to know of the foregoing facts and events at
`the time ReShape Medical first submitted the ReShape Duo™ product for FDA
`approval in 2012.
`COUNT I – TRADE SECRET MISAPPROPRIATION
`31. Fulfillium repeats the allegations of paragraphs 1-30 above as though
`fully set forth herein.
`32. This claim is asserted against ReShape Medical for misappropriation
`of Fulfillium’s trade secrets and for conspiring to misappropriate such trade
`secrets.
`33. The specific trade secrets that ReShape and/or its agents
`misappropriated, despite the repeated oral and/or written agreements of
`confidentiality, relate to at least three aspects of Dr. Chen’s clinical trial
`“playbook.” Three key protocols in the playbook optimized the experimental
`rigor of the trial, especially in combination, in contrast to the typical product
`development approach to optimize the conditions for favorable outcomes. The
`first is the counterintuitive control arm that “stacked the deck” against the
`experimental arm. To tease out efficacy due to the device alone, the device
`therapy had to show statistically better results over the most efficacious non-
`interventional therapy available, namely diet and exercise counseling. The second
`is the trial primary and secondary endpoints that set high bars for not just efficacy
`but clinical efficacy. To gain acceptance in the bariatric scientific community, not
`only the results have to be statistically significant, but the difference between the
`two arms had to be wide enough to warrant an interventional device therapy. The
`third is the counterintuitive and gastric device-focused principal investigator
`selection premise. To provide even further confidence in the results to overcome
`
`AMENDED COMPLAINT FOR TRADE SECRET MISAPPROPRIATION AND PATENT INFRINGEMENT
`AMENDED COMPLAINT FOR TRADE SECRET MISAPPROPRIATION AND PATENT INFRINGEMENT
`PAGE 10
`
`
`
`
`
`
`
`RESHAPE 1021
`
`

`

`Case 2:17-cv-08419-RGK-PLA Document 39 Filed 11/20/17 Page 11 of 76 Page ID #:902
`
``
`
`the stigma of gastric balloons, the trial was to be conducted under the watchful
`eyes of investigators of consummate skill and reputation. All of the above were
`developed after Dr. Chen’s extensive study of the shortcomings of previous
`gastric devices.
`34. The disclosures of each of these three trade secrets were made
`pursuant to the aforementioned written and/or oral agreements of confidentiality
`to SV Life Sciences and New Leaf. On information and belief, these trade secrets
`were conveyed to Mr. Wallace and ReShape Medical, who each used them for
`their own benefit.
`35. A significant portion of the information used by ReShape Medical to
`design its device and obtain FDA approval constitute Fulfillium trade secrets in
`that they: (a) constitute information that derives independent economic value from
`not being generally known to the public or to other persons who can obtain
`economic value from its disclosure or use; and (b) have been the subject of
`reasonable efforts to maintain their secrecy.
`36. Through SV Life Sciences (and its misappropriation of Dr. Chen’s
`trade secrets, which were protected via repeated confidentiality agreements), Mr.
`Wallace, and Sprout, ReShape Medical acquired confidential, expert validated,
`trade secret information about all aspects of Fulfillium’s business, including
`clinical trial design and regulatory strategy. Specifically, ReShape
`misappropriated at least the three aforementioned aspects of Dr. Chen and
`Fulfillium’s clinical trial playbook.
`37. Upon information and belief, ReShape Medical has relied upon and
`used that trade secret information in some or all aspects of its business, including
`raising capital, product design, procedure design, and FDA clinical trial design.
`38. The actions alleged above constitute a wrongful misappropriation of
`Fulfillium’s trade secrets. They also constitute a wrongful conspiracy among the
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`AMENDED COMPLAINT FOR TRADE SECRET MISAPPROPRIATION AND PATENT INFRINGEMENT
`AMENDED COMPLAINT FOR TRADE SECRET MISAPPROPRIATION AND PATENT INFRINGEMENT
`PAGE 11
`
`
`
`
`
`
`
`RESHAPE 1021
`
`

`

`Case 2:17-cv-08419-RGK-PLA Document 39 Filed 11/20/17 Page 12 of 76 Page ID #:903
`
``
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`board directors and officers of and investors in ReShape Medical to
`misappropriate Fulfillium’s trade secrets.
`39. As a direct and proximate result of the actions alleged above,
`Fulfillium has been shut out of the market. By misappropriating Fulfillium’s
`technology and launching a competing company, ReShape Medical prevented
`Fulfillium from raising the funds required to bring its product to market.
`40. As a direct and proximate result of the actions alleged above,
`ReShape Medical has been unjustly enriched in an amount no less than the
`business opportunity deprived from Fulfillium.
`41.
`In doing the acts hereinabove alleged, ReShape Medical and its
`investors have engaged in willful and malicious misappropriation by reason
`thereof, and Fulfillium is entitled, as against each of them, to twice the amount of
`its actual damages and/or the amounts by which ReShape Medical has been
`unjustly enriched as exemplary damages pursuant to Civil Code § 3426.3(c)
`and/or Mass. Gen. Laws ch. 93, § 42-42A.
`42. By the aforesaid acts, ReShape Medical has irreparably injured
`Fulfillium and such injury will continue unless enjoined by this Court.
`COUNT II – RESHAPE MEDICAL’S INFRINGEMENT OF U.S. PATENT
`NO. 9,456,915
`43. Fulfillium repeats the allegations of paragraphs 1-42 above as though
`fully set forth herein.
`44. On October 4, 2016, U.S. Patent No. 9,456,915 (“the ‘915 patent”),
`entitled “Methods, Devices, and Systems for Obesity Treatment,” was duly and
`legally issued by the United States Patent and Trademark Office. A true and
`correct copy of the ’915 patent is attached as Exhibit 1.
`45. Fulfillium is the assignee and owner of the right, title and interest in
`and to the ‘915 patent, including the right to assert all causes of action arising
`under said patents and the right to any remedies for infringement of them.
`
`AMENDED COMPLAINT FOR TRADE SECRET MISAPPROPRIATION AND PATENT INFRINGEMENT
`AMENDED COMPLAINT FOR TRADE SECRET MISAPPROPRIATION AND PATENT INFRINGEMENT
`PAGE 12
`
`
`
`
`
`
`
`RESHAPE 1021
`
`

`

`Case 2:17-cv-08419-RGK-PLA Document 39 Filed 11/20/17 Page 13 of 76 Page ID #:904
`
``
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`46. On information and belief, ReShape Medical is engaged in the
`business of making, using, selling, offering to sell, and/or importing medical
`devices. A description of ReShape Medical’s business is available on its business
`website, which is located at http://pro.reshapeready.com. A screenshot of the
`homepage of ReShape Medical’s business website is attached as Exhibit 3.
`47. As part of its business, ReShape Medical makes, uses, offers to sell,
`sells, and/or imports a dual intragastric balloon for weight loss, including
`ReShape’s “Duo Balloon” device, which is placed inside the patient’s stomach for
`weight loss. ReShape Medical has purposefully sold and offered for sale such
`Duo Balloon devices throughout the United States.
`48. Upon information and belief, ReShape Medical has and continues to
`directly infringe at least claims 1-2 and 4-27 of the ‘915 patent by making, using,
`selling, importing and/or providing and causing to be used medical devices for
`weight loss, including but not limited to, those sold under the name ReShape Duo
`Balloon (the “Infringing Instrumentalities” or “ReShape Balloon”). For clarity the
`terms “Infringing Instrumentalities” and “ReShape Balloon” are understood to
`include the balloon device intended for delivery into the gastric cavity, as well as
`any delivery system for that balloon device.
`49. Representative claim 1 of the ‘915 patent recites a “gastric balloon
`structure for deploying in a gastric cavity of a patient, comprising: at least two
`isolated non-concentric inflatable chambers, wherein each chamber of the at least
`two isolated non-concentric inflatable chambers has a respective inflated state
`volume such that deflation of any single chamber of the at least two isolated non-
`concentric inflatable chambers leaves the inflated state volume of the remaining
`chambers of the at least two isolated non-concentric inflatable chambers
`unaffected.” The Infringing Instrumentalities infringe claim 1 of the ‘915 patent.
`The ReShape Dual Balloon “is a temporary implant designed to facilitate weight
`loss by occupying space in the stomach.” ReShape™ Integrated Dual Balloon
`
`AMENDED COMPLAINT FOR TRADE SECRET MISAPPROPRIATION AND PATENT INFRINGEMENT
`AMENDED COMPLAINT FOR TRADE SECRET MISAPPROPRIATION AND PATENT INFRINGEMENT
`PAGE 13
`
`
`
`
`
`
`
`RESHAPE 1021
`
`

`

`Case 2:17-cv-08419-RGK-PLA Document 39 Filed 11/20/17 Page 14 of 76 Page ID #:905
`
``
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`System Instructions for Use, PN 03-0300 Rev. D, p. 1,
`https://reshapeready.com/wp-
`content/uploads/2015/07/ReShape_Instructions_For_Use.pdf. The figure below,
`taken from ReShape’s instruction manual, shows the dual balloon in a patient’s
`stomach. The ReShape website states that “[i]n the unlikely event of individual
`gastric balloon leakage or deflation, the independently sealed ReShape weight loss
`balloons are designed to minimize risk of migration or obstruction.”
`http://pro.reshapeready.com/about-reshape/#theadvantages. In other words, each
`balloon inflates and deflates independently. See also
`https://www.youtube.com/watch?v=U91FsjtMf3o.
`
`
`
`
`
`
`
`
`
`
`
`
`
`50. Claim 1 further recites “a valve system for introducing a fluid into
`the at least two isolated non-concentric inflatable chambers and for retaining,
`upon inflation, the fluid in the at least two isolated non-concentric inflatable
`chambers.” The chambers of the ReShape balloons are filled after they are
`positioned in the patient’s stomach. ReShape™ Integrated Dual Balloon System
`
`AMENDED COMPLAINT FOR TRADE SECRET MISAPPROPRIATION AND PATENT INFRINGEMENT
`AMENDED COMPLAINT FOR TRADE SECRET MISAPPROPRIATION AND PATENT INFRINGEMENT
`PAGE 14
`
`
`
`
`
`
`
`RESHAPE 1021
`
`

`

`Case 2:17-cv-08419-RGK-PLA Document 39 Filed 11/20/17 Page 15 of 76 Page ID #:906
`
``
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`Instructions for Use, PN 03-0300 Rev. D, pp. 16-17, https://reshapeready.com/wp-
`content/uploads/2015/07/ReShape_Instructions_For_Use.pdf. “The ReShape™
`Valve Sealant is necessary to seal the device valves and prevent balloon leakage.”
`Id.; see also https://www.youtube.com/watch?v=U91FsjtMf3o; U.S. Pat. No.
`8,142,469 at Fig. 1, 3-5.
`51. Claim 1 further recites “a flexible central spine spanning a gap
`between and fixedly attached to both a first chamber of the at least two isolated
`non-concentric inflatable chambers and a second chamber of the at least two
`isolated non-concentric inflatable chambers; wherein the gastric balloon structure,
`in its inflated state, assumes a curved shape conforming to a natural three-
`dimensional kidney shape of the gastric cavity, such that the flexible central spine
`flexibly conforms, upon at least partially filling the at least two isolated non-
`concentric inflatable chambers, the gastric balloon structure to the natural three-
`dimensional kidney shape of the gastric cavity.” The flexible central spine
`element is illustrated in the video provided on ReShape’s website, a frame from
`which is reproduced below. See https://reshapeready.com/reshape-cc/; see also
`https://www.youtube.com/watch?v=U91FsjtMf3o.
`
`
`
`
`
`
`
`
`
`The conformance of the dual balloon to the stomach of the patient is shown in the
`image above and is also illustrated in Figure 1 of ReShape’s instructions for use,
`reproduced below.
`
`
`AMENDED COMPLAINT FOR TRADE SECRET MISAPPROPRIATION AND PATENT INFRINGEMENT
`AMENDED COMPLAINT FOR TRADE SECRET MISAPPROPRIATION AND PATENT INFRINGEMENT
`PAGE 15
`
`
`
`
`
`
`
`RESHAPE 1021
`
`

`

`Case 2:17-cv-08419-RGK-PLA Document 39 Filed 11/20/17 Page 16 of 76 Page ID #:907
`
``
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`52. The final recitation in claim 1 is that “a respective fluid volume for
`filling each chamber of the at least two isolated non-concentric inflatable
`chambers is selected based upon dimensions of the gastric cavity of the patient.”
`ReShape’s instructions for use state as follows:
`2.4. Determine the desired inflation volume for each balloon. A fill volume of
`375 cc is recommended for patients < 64.5” in stature and 450 cc for patients ≥
`64.5” in stature.
`See https://reshapeready.com/wp-
`content/uploads/2015/07/ReShape_Instructions_For_Use.pdf at 16. ReShape
`instructs the user to determine the size of the patient and to select a corresponding
`fill volume for the balloon structure.
`53. Claim 2 generally recites the gastric balloon structure of claim 1,
`wherein the gastric balloon structure is designed to provide for modulated passage
`of food through the gastric cavity upon inflation.
`54. The Infringing Instrumentalities infringe claim 2 of the ‘915 patent.
`The ReShape Dual Balloon “is a temporary implant designed to facil

This document is available on Docket Alarm but you must sign up to view it.


Or .

Accessing this document will incur an additional charge of $.

After purchase, you can access this document again without charge.

Accept $ Charge
throbber

Still Working On It

This document is taking longer than usual to download. This can happen if we need to contact the court directly to obtain the document and their servers are running slowly.

Give it another minute or two to complete, and then try the refresh button.

throbber

A few More Minutes ... Still Working

It can take up to 5 minutes for us to download a document if the court servers are running slowly.

Thank you for your continued patience.

This document could not be displayed.

We could not find this document within its docket. Please go back to the docket page and check the link. If that does not work, go back to the docket and refresh it to pull the newest information.

Your account does not support viewing this document.

You need a Paid Account to view this document. Click here to change your account type.

Your account does not support viewing this document.

Set your membership status to view this document.

With a Docket Alarm membership, you'll get a whole lot more, including:

  • Up-to-date information for this case.
  • Email alerts whenever there is an update.
  • Full text search for other cases.
  • Get email alerts whenever a new case matches your search.

Become a Member

One Moment Please

The filing “” is large (MB) and is being downloaded.

Please refresh this page in a few minutes to see if the filing has been downloaded. The filing will also be emailed to you when the download completes.

Your document is on its way!

If you do not receive the document in five minutes, contact support at support@docketalarm.com.

Sealed Document

We are unable to display this document, it may be under a court ordered seal.

If you have proper credentials to access the file, you may proceed directly to the court's system using your government issued username and password.


Access Government Site

We are redirecting you
to a mobile optimized page.





Document Unreadable or Corrupt

Refresh this Document
Go to the Docket

We are unable to display this document.

Refresh this Document
Go to the Docket