On October 10, 2014, Buffalo based Kinex Pharmaceuticals, Inc. (now Athenex, Inc.) filed a lawsuit in New York State Supreme Court against Fulgent Therapeutics LLC (“Fulgent”) and ANP Technologies, Inc. (“ANP”), alleging that the two drug companies conspired with a former Kinex employee and misappropriated confidential, propriety and trade secret information. Kinex sought 2.9 billion dollars in damages. Kinex also obtained an ex parte temporary restraining order (“TRO”), which prevented the production of a novel anti-cancer medicine under development by Fulgent and ANP. Kinex requested that the Court convert the TRO into a preliminary injunction.
Webster Szanyi was retained to defend the lawsuit by Fulgent’s and ANP’s owner, Chinese-American billionaire philanthropist Ming Hsieh.
On behalf of Mr. Hsieh’s companies, Webster Szanyi denied all of the allegations in the lawsuit and aggressively countersued Kinex for hundreds of thousands of dollars in damages caused by the TRO, and for costs and attorneys’ fees. Webster Szanyi immediately challenged the ex parte TRO, and successfully convinced the Court to modify the TRO to allow Fulgent and ANP to continue development of their novel anti-cancer medicine.
Following months of depositions and motion practice, Webster Szanyi was able to fully vacate the TRO and Plaintiff’s request for a preliminary injunction was denied. At the conclusion of discovery, Webster Szanyi moved for summary judgement seeking the dismissal of all of Kinex’s claims, and for an award of damages on the counterclaim asserted by Fulgent and ANP.
Shortly after the motions were filed, Kinex agreed to discontinue the lawsuit against Fulgent and ANP, with prejudice. No money or other consideration was paid by Fulgent or ANP in exchange for the discontinuance. Fulgent’s countersuit against Kinex for costs and attorney fees was also resolved, under confidential terms, and discontinued.
The case was handled by Webster Szanyi partners Kevin Szanyi and Andrew Miller, and Steven Hamlin, an associate at the firm.