By Memorandum Opinion entered by The Honorable Gregory M. Sleet in SurgiQuest v. Lexion Medical, LLC., Civil Action No. 14-382-GMS (D.Del. May 16, 2018), the Court denied Plaintiff/Counterclaim-Defendant SurgiQuest’s renewed motion for judgment as a matter of law (“JMOL Motion”) on the jury’s verdict which found that SurgiQuest had engaged in false and misleading advertising and unfair competition in violation of the Lanham Act and Delaware common law and awarded monetary damages to Defendant/Counterclaim-Plaintiff Lexion Medical, LLC. The Court also denied Lexion’s post-trial motions for permanent injunction, disgorgement of profits, attorneys’ fees and prejudgment interest. Id. at *2. The Court granted Lexion’s motion for postjudgment interest. Id. at *26.

In support of its JMOL motion on the jury’s award of monetary damages, SurgiQuest asserted that no reasonable jury could have awarded money damages because (1) Lexion failed to prove causation between the false advertising claims and damages; (2) the jury instructions on causation and damages were incorrect; and (3) the Court improperly admitted hearsay and salesperson confusion evidence. Id. at *4. In response, Lexion contended that SurgiQuest could not prove a lack of sufficient evidence because the pertinent statements were literally false, consumers purchased SurgiQuest’s product and stopped purchasing Lexion’s product, and the evidence of confusion showed that the false advertising actually deceived a portion of the buying public. Id. at *5.

After considering the entire record in the case, including the evidence in the record, the parties’ post-trial submissions, and the applicable law, the Court agreed with Lexion and concluded that (1) the evidence at trial was sufficient to support the jury’s verdict that there was a causal connection between the false advertising by SurgiQuest and Lexion’s loss; (2) the jury instructions were proper; and (3) the statements alleged by SurgiQuest to be hearsay and salesperson confusion evidence were properly admitted. Id. at *5-13. The Court also concluded that there was sufficient evidence to support the jury’s verdict awarding punitive damages to Lexion. Id. at*13-17.

A copy of the Memorandum Opinion is attached.

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