Personal Jurisdiction Found Lacking in Trade Secret Action Brought by a Maryland Corporation

Thursday, January 10, 2019

In a dispute between two competitors in the wound and orthopedic medicine market, plaintiff Osiris Therapeutics, Inc. (“Osiris”), a Maryland corporation, alleged that defendant Mimedx Corp., Inc. (“Mimedx”) violated the Maryland Trade Secrets Acts (“MUTSA”) by improperly accessing and misappropriating confidential customer lists and sales information belonging to Osiris.  According to the Complaint, Mimedx acquired the confidential information through its acquisition of a distribution company that had earlier entered into and had an ongoing agreement with Osiris.  The acquired distribution company had promised to protect the confidential information.  Mimedx, a Florida corporation with its primary place of business in Georgia, moved to dismiss the action for lack of personal jurisdiction.  U.S. District Judge Catherine C. Blake granted Mimedx’s motion to dismiss, finding that the contacts of the distribution company, which was set up as a subsidiary of Mimedx, were not imputed to Mimedx as a parent company for the purpose of a jurisdictional analysis absent a showing of “piercing the corporate veil.”   Further, Judge Blake found that Osiris had not sufficiently alleged that any of Mimedx’s suit-related conduct occurred in Maryland.  Osiris Therapeutics, Inc. v. Mimedx Grp., Inc., Civ. No. CCB-18-950, 2018 WL 6573099 (D. Md. Dec. 13, 2018).