AngioScore, Inc. v. TriReme Medical, Inc.

Eitan Konstantino (defendant) invented the AngioSculpt, an angioplasty catheter. In 2003, Konstantino cofounded AngioScore, Inc. (plaintiff) to bring the AngioSculpt to market. In 2005, Tom Trotter replaced Konstantino as CEO. Konstantino transitioned to a different executive role, but he was unhappy with his new circumstances. Konstantino wanted to leave AngioScore to work full-time at another medical-device company he had founded, TriReme Medical, Inc. Konstantino’s employment with AngioScore ended in 2007. Konstantino remained on the board of directors and participated in board meetings until February 2010, when he was asked to resign. At this time, AngioScore was a strong company with about $15 million in cash on hand. In late 2009, Konstantino had begun developing a product, Chocolate, intended to compete with AngioSculpt. Chocolate used the same materials as AngioSculpt. Chocolate was to be priced exactly $25 below the list price for AngioSculpt and was intended for the same customers. During Chocolate’s development, Konstantino was still a member of AngioScore’s board and privy to confidential information. Eventually, Konstantino told Trotter that TriReme was considering developing a specialty balloon catheter, which was a lie. Trotter cut off the discussion and reported Konstantino’s comments to AngioScore’s board. The board determined Konstantino had a conflict of interest and requested his resignation, which Konstantino gave while denying development of any competing product. In spring of 2014, AngioScore learned of the competing product by Konstantino. AngioScore filed a claim for breach of fiduciary duty in the United States District Court for the Northern District of California.