Insulet Corp. v. EOFlow Co.: Waiting Too Long Can Cost the Entire Case
Following a jury verdict of approximately $452 million—later reduced by the district court to $59.4 million—a divided Federal Circuit panel reversed the judgment in a trade-secret dispute involving competing wearable insulin-delivery devices, ruling that Insulet waited too long to sue.
On May 28, 2026, the court held that, under the Defend Trade Secrets Act, a company must sue within three years after it discovers—or reasonably should have discovered—the alleged misappropriation. Complete proof is unnecessary. Former employees with access to Insulet’s trade secrets had joined a direct competitor, its product appeared strikingly similar, and internal communications raised concerns about misuse. Together, those facts provided enough information to bring a claim years earlier.
CASE EFFECT
Trade-secret protection requires more than confidentiality agreements and cybersecurity.
It also requires a process. Companies should identify warning signs, preserve evidence, investigate concerns promptly, and document their findings. Waiting until every fact becomes clear may allow the limitations period to expire before litigation even begins.
