Tribocor Technologies, Inc., v. Gansam Rai and AirComp LLC

Brief

HKA experts served as expert witnesses for AirComp LLC and Dr. Gansam Rai in a trade secret litigation matter with Tribocor. Tribocor, a former supplier of polycrystalline diamond (PCD) inserts, once employed Dr. Rai and supplied AirComp with PCD inserts.

When Dr. Rai left, Tribocor and AirComp began purchasing PCD inserts from different suppliers. Tribocor sued for breach of contract, tortious interference with existing contractual relations, misappropriation of trade secrets and confidential information, unfair competition, conspiracy, conversion, breach of fiduciary duty, inducement to breach fiduciary duty, fraud by nondisclosure, and unjust enrichment.

Tribocor’s damages expert stated that Tribocor was entitled to multiple forms of disgorgement, including AirComp’s product cost savings, avoided research and development costs, profits AirComp made on third-party sales, AirComp’s royalty revenues. AirComp, and certain commissions received by Dr. Rai. These claims totaled approximately $12 million.

What we did

Our experts performed a detailed and rigorous analysis of Tribocor’s claims to support our opinions. The team’s carefully crafted damages presentation further allowed the jury to understand the value of Tribocor’s misappropriated trade secrets and confidential information in the context of Tribocor’s various disgorgement claims.

Our experts testified that even assuming Tribocor’s allegations were true, the alleged trade secrets had de minimis if any, commercial value. We also testified that any benefits received by AirComp and Dr. Rai were unrelated to Tribocor’s trade secrets and confidential information.

Outcomes

A jury in the District Court of Harris Country, Texas, found that one or more of the Defendants misappropriated certain of Tribocor’s trade secrets, failed to comply with a duty to keep confidential any new trade secrets or confidential information learned while employed at Tribocor, and that AirComp knowingly participated in Dr. Rai’s disclosure of Tribocor’s trade secrets and intentionally interfered with Dr. Rai’s employment agreement with Tribocor. The jury, however, agreed with our experts, awarding Tribocor $0 in damages.