Volcano found guilty over OCT breach of contract
A Massachusetts Superior Court for Suffolk County jury has ruled against Volcano and its wholly owned subsidiary, Axsun Technologies, in a breach of contract lawsuit filed by Lightlab Imaging on Jan. 7, 2009.
In December 2008, Volcano acquired Billerica, Mass.-based Axsun, which had an agreement to supply tunable lasers to the Westford, Mass.-based Lightlab for use in Lightlab's optical coherence tomography (OCT) imaging products until April 2016, with exclusivity in the field of coronary artery imaging expiring in April 2014, according to Volcano. Since the acquisition, Axsun has continued to supply lasers to Lightlab.
The jury found that the contract specification for the laser Axsun supplies to Lightlab is a trade secret of Lightlab, which Axsun agreed not to sell any tunable lasers for use in cardiology imaging to any third party during the exclusivity period in the contract, and that Axsun breached its contract with Lightlab. The jury further found that Volcano intentionally interfered with Lightlab's advantageous business relationship with Axsun. The jury was not charged with determining damages, which, if any, would be established in a second jury trial.
San Diego-based Volcano said it intends to appeal the jury verdict and is not in the position to estimate the possible loss attributable to this verdict. Volcano also noted that it does not believe that the development will have a material impact on its OCT program or Axsun's business.
In December 2008, Volcano acquired Billerica, Mass.-based Axsun, which had an agreement to supply tunable lasers to the Westford, Mass.-based Lightlab for use in Lightlab's optical coherence tomography (OCT) imaging products until April 2016, with exclusivity in the field of coronary artery imaging expiring in April 2014, according to Volcano. Since the acquisition, Axsun has continued to supply lasers to Lightlab.
The jury found that the contract specification for the laser Axsun supplies to Lightlab is a trade secret of Lightlab, which Axsun agreed not to sell any tunable lasers for use in cardiology imaging to any third party during the exclusivity period in the contract, and that Axsun breached its contract with Lightlab. The jury further found that Volcano intentionally interfered with Lightlab's advantageous business relationship with Axsun. The jury was not charged with determining damages, which, if any, would be established in a second jury trial.
San Diego-based Volcano said it intends to appeal the jury verdict and is not in the position to estimate the possible loss attributable to this verdict. Volcano also noted that it does not believe that the development will have a material impact on its OCT program or Axsun's business.