Health Company Sued for Using Confidential Information of Software Developer

Monday marked the filing of a suit by plaintiff Lifescience Technologies, LLC (LST) in the Eastern District of Missouri against defendants Mercy Health, related entities, and Myia Labs, Inc, doing business as Myia Health. The complaint by LST was filed for breach of contract, trade secret misappropriation, unjust enrichment, unfair competition, and civil conspiracy.

LST alleges that Mercy Health engaged in the “willful and deliberate disclosure” of LST trade secrets and confidential information to a third-party competitor, Myia. Mercy Health has relied on LST since their opening in 2015, according to the complaint;. although LST is smaller on a revenue basis, the LST team offered a virtual patient care delivery system that was “scalable to support the anticipated growth of Mercy Health’s virtual patient care delivery services model.”

Mercy Health purportedly used the LST services until they determined they would build their own virtual patient care software. LST explains that in order to build this system, Mercy Health “allowed Myia’s software development team improper access to LST’s software using credentials.” As a result of the misconduct, LST claims that Mercy Health now has a $5 million ownership interest in Myia and its new virtual care software, which was developed using the confidential information of LST without their permission.

In the complaint, the plaintiff stated that they are seeking relief against all the defendants, “jointly and severally, for utilizing its trade secrets and confidential information to develop a competing software product and using that new product to displace LST in the marketplace.”

The misconduct has led them to cite explicit counts of breach of contract, trade secret misappropriation, violation of the Missouri Computer Tampering Act, unjust enrichment, civil conspiracy, unfair competition, and tortious interference with a contract or business expectancy. They are seeking favorable judgment on all counts, actual, punitive, and exemplary damages, injunctions preventing the defendants from further misusing LST’s confidential information and ordering them to destroy software products developed through dishonest means.

The plaintiff is represented by Stinson, LLP.