Rotary in April 2011 sued Accuray predecessor TomoTherapy on several claims of injury, primarily for alleged misappropriation of trade secrets related to components sold by Rotary that TomoTherapy had started buying from a different supplier. Rotary claimed that TomoTherapy handed the trade secrets over to the new supplier, Dynamic Sealing Technologies, which was also a named defendant in the lawsuit.
Accuray in August 2011 won dismissal of all of Rotary’s injury claims, with the exception of the misappropriation of trade secrets, according to an Accuray quarterly report. In May 2012 the 10th Judicial District Court of Minnesota partially granted Accuray’s motion for sanctions and gave Rotary 60 days to specify which trade secrets had allegedly been misused.
The court in September 2012 held a hearing to review Rotary’s amended complaint, and a discovery deadline was set for October 2013. Both Accuray and Rotary filed to extend discovery until 2014, and Accuray further filed a motion for summary judgment, which was granted at the end of the year.
Rotary has already filed notice for an appeal, Accuray noted.
That’s more good news for Accuray, which posted strong financials for its quarter ended December 31. Accuray’s losses shrank by more than 80% on a 20% boost in sales during its 2nd quarter. Per-share earnings beat Wall Street’s consensus estimates by a whopping 12¢.
ARAY shares were up 0.4% today, trading at $9.97 as of about 4 p.m.