The United States Court of Appeals for the Federal Circuit has reversed a lower court's ruling in the case of Insulet Corp. v. EOFlow, Co. Ltd., impacting the legal landscape surrounding trade secret misappropriation. The court's decision, issued on May 28, 2026, affects Insulet, a medical-device manufacturer, and EOFlow, a competitor in the insulin delivery market. This ruling is significant as it addresses the statute of limitations applicable to trade secret claims under the Defend Trade Secrets Act (DTSA).
In this case, Insulet Corp. accused EOFlow of misappropriating its trade secrets related to its insulin patch pump technology. The court's ruling has implications for how long companies have to file trade secret claims and the standards that apply to such cases.
Insulet Corp. is known for its Omnipod insulin delivery system, which has been marketed since 2005. EOFlow, a competitor, developed a similar product called the EOPatch. Insulet alleged that EOFlow misappropriated its trade secrets when it hired former Insulet employees to assist in the development of the EOPatch 2. The dispute began when Insulet filed a lawsuit against EOFlow in the District of Massachusetts on August 3, 2023, claiming trade secret misappropriation and patent infringement.
The case was initially bifurcated, meaning the court separated the trade secret claims from the patent claims. Insulet argued that EOFlow's actions violated the DTSA, which protects trade secrets from unauthorized use or disclosure. EOFlow countered that Insulet's claims were barred by the statute of limitations, asserting that Insulet waited too long to file its lawsuit.
The district court denied both parties' motions for summary judgment on the statute of limitations issue, allowing the case to proceed to trial. A jury ultimately found that EOFlow had misappropriated four of Insulet's trade secrets and awarded Insulet substantial damages. However, EOFlow appealed the decision, arguing that the statute of limitations had expired before Insulet filed its claim.
In its ruling, the Federal Circuit agreed with EOFlow, stating that the statute of limitations had indeed expired. The court determined that Insulet was aware of the misappropriation before the critical date of August 3, 2020, which marked three years prior to the filing of the lawsuit. The court stated, "We conclude that even under the more demanding Merck standard, the statute of limitations expired before Insulet filed its complaint because the undisputed evidence shows that Insulet knew or should have known before the critical date the facts it needed to sufficiently plead a trade secret misappropriation claim against EOFlow."
The ruling was made by Circuit Judge Dyk, with Circuit Judge Prost dissenting. The court's decision to reverse the lower court's ruling means that EOFlow is no longer liable for the trade secret misappropriation claims that were brought against it by Insulet.
This ruling has significant implications for future trade secret cases, particularly regarding the timing of when a claim can be filed. It clarifies that companies must be vigilant in protecting their trade secrets and must act promptly if they suspect misappropriation. The decision reinforces the importance of understanding the statute of limitations in trade secret law, which is crucial for companies operating in competitive industries.
Moving forward, this case may influence how companies approach their trade secret protections and the strategies they employ when they suspect that their proprietary information has been compromised. The ruling could also lead to more litigation over the interpretation of the statute of limitations in trade secret cases, as companies seek to navigate the complexities of the DTSA.
As for the possibility of an appeal, details were not available in the court filing regarding whether EOFlow plans to seek further review of the decision. There are no known related cases pending at this time.