Boston, MA — In a decisive courtroom battle, the law firm Arnold & Porter secured a substantial victory for its client Cynosure, a front-runner in the aesthetic and medical treatment devices industry. The Boston jury, after a month-long trial, awarded the company over $25 million in damages against Reveal Lasers and several of its employees. The legal proceedings concluded on Friday, September 27, at the United States District Court, District of Massachusetts.
The conflict centered around accusations that Reveal Lasers, along with 28 of its employees, had infringed upon various business conducts including breach of contract and duties of loyalty. The allegations extended to tortious interference with contractual relations, misappropriation of trade secrets, involvement in unfair and deceptive trade practices, and conspiracy.
Significantly, the legal strategy executed by Arnold & Porter included swift initial victories, such as securing a temporary restraining order shortly after filing the suit, followed by a preliminary injunction. These court-enforced orders predominantly upheld several non-compete clauses which played a crucial role in the case’s progression.
The legal focus narrowed considerably during proceedings, concentrating primarily on Reveal Lasers and the two principal figures accused of orchestrating a corporate raid: Chris Chambers and Robert Daley, Cynosure’s former North American and Northeast sales heads respectively. The court scrutinized their actions which purportedly led an aggressive recruitment drive, pulling significant human resources from Cynosure just as Reveal was making a strategic entry into the U.S. market. The resulting exodus saw about a quarter of Cynosure’s North American sales force departing in May and June 2022. The defectors allegedly carried with them sensitive trade secrets and critical company data beneficial to Reveal.
The jury found that Chambers and Daley had violated multiple clauses in their contracts, including non-competition, non-solicitation of employees, and non-disclosure agreements. Further findings included breaches of the implied covenant of good faith, fair dealing, and fiduciary duties of loyalty, all purportedly abetted by Reveal. The collective actions of these defendants, as determined by the jury, constituted interference in the contracts of other Cynosure employees and conspiracy to engage in illegal activities.
In response to these violations, the jury’s award of over $25 million to Cynosure comprised both compensatory and punitive damages, signaling a strong rebuke of the defendants’ conduct.
The Arnold & Porter team, led by partners Dipanwita Deb Amar and Joe Farris and supported by partner Joshua Barlow and senior associate Matthew Diton, expressed satisfaction with the jury’s decision, highlighting its implications for contract enforcement and protection of corporate assets in the competitive industry of medical and aesthetic technology.
This case not only underscores the intense competition within the technology sectors but also highlights the critical nature of contractual agreements and the severe consequences of corporate espionage. As companies continue to vie for market dominance, the Cynosure vs. Reveal Lasers case may serve as a benchmark for how deep the roots of loyalty and confidentiality must go in the corporate world.