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Nikole Mergo Discusses Pharmaceutical Trade Secrets Case

Media Mention  |  Columbia Regional Business Report

Nexsen Pruet litigator Nikole Mergo and Nephron CEO Lou Kennedy recently sat down with the Columbia Regional Business Report for their article, "Nephron to receive $7.9 million in trade secrets case," to discuss the settlement of a three-year legal battle.

U.S. Compounding and their parent company Admanis Pharmaceuticals Corp. agreed to pay Neprhon Pharmaceuticals a $7.9 million sum in the settlement of a lawsuit alleging theft of the West Columbia company's trade secrets.

Led by Columbia Office Managing Partner Nikole Mergo as lead trial counsel along with employment attorneys Jennie Cluverius and Jimmy Byars, Nexsen Pruet has represented Nephron Pharmaceuticals Corp, Nephron S.C. Inc., and Nephron Sterile Compounding Centers, LLC since the suit was filed in 2018. Local counsel is Mary Ruth Houston of Shutts & Bowen LLP in Orlando.


Mergo said several factors led to the settlement. On March 29, U.S. Compounding and California-headquartered Adamis were found in civil contempt for violating a Florida injunction against using Nephron’s information while the case was being litigated.

“Once we found out about the second employee, we made a motion for a finding of contempt,” Mergo said. A ruling in Nephron’s favor reimbursed the company $123,000 in legal fees and imposed daily fines, the amount of which was still pending at the time of the settlement.

In addition, Mergo said evidence related to the second employee in New Jersey was going to be allowed into the Florida case.  

In an April 15 filing with the U.S. Securities and Exchange Commission, Adamis said Nephron’s allegations of misappropriation of trade secrets were without merit, but cited factors including the outcome of pre-trial motions and ongoing legal expenses as well as “the uncertainties of litigation and jury trials, and the possibility of punitive damages and other adverse awards or sanctions” in agreeing to the settlement.

Mergo said that Kennedy’s determination also sent a strong signal.

“She was ready to go to a jury,” Mergo said. “It was that resolve that put a lot of pressure and I think ultimately resulted in the settlement.”

Read the full article here

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