Intellectual Property,
9th U.S. Circuit Court of Appeals
Aug. 21, 2026
9th Circuit tosses $40M trade secrets verdict over trial errors
Comet's $40 million trade secret verdict unraveled on appeal, illustrating how midtrial claim changes, jury instructions, and an all-or-nothing damages strategy combined to turn "remarkable" evidence of misappropriation into reversible error.
A trade secret plaintiff received $40 million in damages, a
permanent injunction, and over $17 million in attorney fees on evidence the 9th
Circuit described as "remarkable," including poached employees from a
competitor, stolen documents, recorded headhunter calls memorializing the
scheme, and the delivery of a detailed plan for a new product line in just nine
days. But last month the 9th Circuit threw out the verdict.
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