Veeva Systems has reported that the US District Court for the Southern District of New York rejected the trade secret misappropriation lawsuit filed by Dassault Systèmes company Medidata against the former. 

The judge halted the proceedings halfway through the jury trial and dismissed the case, concluding that Medidata had failed to substantiate its allegations against Veeva. 

In 2017, Medidata sued Veeva as well as five former staff of Medidata alleging that these employees, who are now employees of Veeva, inappropriately utilised confidential information of Medidata for the benefit of Veeva. 

In a press statement, Veeva said that the ruling is a vital move to protect the rights of employees and customers as the suit involved an attempt to stifle competition and the free talent flow using unfounded trade secret allegations.

Veeva also noted that Medidata filed the trade secret case despite lack of evidence to support the lawsuit and is an attempt to hinder the former’s efforts to innovate in the clinical data management market and to intimidate employees of Medidata from joining Veeva.

The case is claimed to have confused customers of both companies, harmed employees and cost a combined sum of $40m.

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Veeva CEO Peter Gassner said: “We are pleased the court dismissed Medidata’s suit and stood up for the rights of employees and customers in the face of an abuse of the legal system, intimidation of employees, and an attempt to limit companies’ access to innovation. 

“Baseless lawsuits like Medidata’s harm individuals, customers, and the industry overall. 

“I hope this ruling encourages others to focus their energy on innovation and employee success rather than unnecessary and harmful litigation.”