Walmart slapped with $12 million in damages over misappropriating trade secrets | Arkansas Blog

Monday, April 24, 2017

Walmart slapped with $12 million in damages over misappropriating trade secrets

Posted By on Mon, Apr 24, 2017 at 11:54 AM

click to enlarge GOLIATH LOSES THIS FOUND: Federal jury finds that Walmart misappropriated trade secrets, slapped with more than $12 million in damages.
  • GOLIATH LOSES THIS FOUND: Federal jury finds that Walmart misappropriated trade secrets, slapped with more than $12 million in damages.

An Arkansas jury last Friday awarded Cuker Interactive, a California-based digital marketing agency, more than $12 million in damages  from Walmart. The jury found that Walmart had misappropriated trade secrets. In addition, the jury awarded Cuker $30,600 in damages for breach of contract and $400,000 for unjust enrichment.

Here's a roundup of the case from the online legal news site Law360:

The case stems from a January 2014 contract where Wal-Mart agreed to pay Cuker around $577,000 to build a responsive e-commerce website for its Asda Stores Ltd., a brick-and-motor retailer in the United Kingdom that also has online shopping services.

The relationship soured in the months that followed, and Wal-Mart sued for breach of contract. Then Cuker filed counterclaims alleging Wal-Mart didn’t live up to it end of the bargain and stole various trade secrets stemming from the development of the site services.

After a 10-day trial, a jury found Wal-Mart hadn’t proved Cuker breached its contract. But it did find Wal-Mart misappropriated trade secrets in four areas — phased release support technique, a CMS tweak development tool, Adobe Illustrator and Photoshop source files and zoning tools — and awarded damages totaling just over $12 million.

The jury found the misappropriation was willful and malicious except for the CMS tweak development tool, according to the verdict.
Statement released by Cuker's attorney:

The jury made a specific finding that Wal-Mart acted willfully and maliciously in misappropriating Cuker's responsive e-commerce website technology. The evidence established that Wal-Mart acquired and exported Cuker’s software technology to offshore and lower cost website developers in violation of the parties’ confidentiality obligations.
And from Walmart, which is considering appeal:
We respectfully disagree with the verdict. In our view, the finding and damages awarded are not supported by the facts. We believe the verdict wrongfully holds Walmart responsible for taking the very materials which Cuker transferred or licensed to us under contract. We are considering all options, including an appeal.

Tags: ,

From the ArkTimes store

Favorite

Comments (3)

Showing 1-3 of 3

Add a comment

 
Subscribe to this thread:
Showing 1-3 of 3

Add a comment

More by David Ramsey

Readers also liked…

  • In Little Rock, Marco Rubio sells American exceptionalism

    This is Rubio's axiomatic answer to Donald Trump's insistence that he and he alone will Make America Great Again: America is the greatest, always has been.
    • Feb 22, 2016
  • Donald Trump declares war on Hillary Clinton's marriage

    Donald Trump gave a remarkable interview to the New York Times yesterday in which he declared open season on the marriage of Bill and Hillary Clinton and Bill Clinton's past infidelity. Seems like a loser, but I've been wrong before.
    • Oct 1, 2016
  • Charter school accountability: Non-existent in Arkansas

    A state audit finds charter school spending violated state law, but the state Education Department says it has no responsibility for ensuring proper management of charter schools. Say what?
    • Mar 5, 2016

Most Shared

  • ASU to reap $3.69 million from estate of Jim and Wanda Lee Vaughn

    Arkansas State University announced today plans for spending an expected $3.69 million gift in the final distribution of the estate of Jim and Wanda Lee Vaughn, who died in 2013 and 2015 respectively.
  • Bad health care bill, again

    Wait! Postpone tax reform and everything else for a while longer because the Senate is going to try to repeal and replace the Affordable Care Act one more time before September ends and while it can do it with the votes of only 50 senators.
  • Sex on campus

    Look, the Great Campus Rape Crisis was mainly hype all along. What Vice President Joe Biden described as an epidemic of sexual violence sweeping American college campuses in 2011 was vastly overstated.
  • The inadequate legacy of Brown

    LRSD continues to abdicate its responsibility to educate poor black students.

Most Viewed

  • Trump launches attack on 'SOBs' of the NFL

    Donald Trump led a rally for Alabama Senate candidate Luther Strange Friday night and the resulting news coverage (if not in our local newspaper) is giving great attention for his rant against the NFL, including but not limited to players who have made political statements by taking a knee during the National Anthem.
  • Legislature itches for more control over 'independent' agencies

    Michael Wickline of the Arkansas Democrat-Gazette reports this morning on growing tension over the legislature's effort to exert more control over the state's constitutionally independent agencies. The immediae target is the Game and Fish Commission, but it's a sprawling dispute over balance of powers.

Most Recent Comments

Blogroll

 

© 2017 Arkansas Times | 201 East Markham, Suite 200, Little Rock, AR 72201
Powered by Foundation