MEDINOL LTD., Plaintiff, - against - BOSTON SCIENTIFIC CORP., et al., Defendants., 346 F. Supp. 2d 575

Summary

The manufacturer and the distributor entered into a series of agreements relating to development, manufacture, and distribution of stents. One agreement required the manufacture to establish an alternative line on which the distributor could manufacture stents if the manufacturer failed to provide the required quantities. However, the distributor established a clandestine production line and had produced stents without the manufacture's knowledge. The court found that the manufacturer breached the contract; the doctrine of cover did not justify the clandestine line, nor was the distributor granted a license to operate such a line. However, the manufacturer failed to establish regulatory fraud. A release barred in part the distributor's counterclaims; an indemnification clause was inapplicable. The distributor was not liable for misappropriating trade secrets because the designs at issue were not secret. The RICO claims failed because there was no showing of continuity of racketeering ...