In a case that alleges
brazen industrial espionage, biopharmaceutical firm Baxter
Healthcare Corp. claimed that an ex-employee stole computer files
containing key drug manufacturing secrets in order to give them to
his new employer in Berkeley -- Baxter's direct competitor.
Baxter sued the competitor, Bayer Corp., as well as the former
Baxter researcher, Danville resident Gopal Dasari, in a federal
complaint for computer fraud and misappropriation of trade secrets
filed in San Francisco on Monday.
The company accused Dasari, an employee for six years at Baxter's
Southern California research centers, of copying hundreds of
sensitive and confidential files onto compact discs just before he
left for his new job at Bayer in late May. Bayer Corp., a U.S. unit
of the international health care group Bayer AG of Germany, has a
biological products manufacturing plant in Berkeley where Dasari
worked.
The computer files he is accused of taking contained data on five
of Baxter's leading products for serious disorders, including
hemophilia, cancer and kidney disease. The records also included
unpublished information about compounds in Baxter's experimental
pipeline, according to the complaint.
Baxter's attorney, Michael Wexler, said the FBI found some of
Baxter's electronic records when agents searched two locations, one
in Walnut Creek and another in Calabasas (Los Angeles County), near
Thousand Oaks (Ventura County),
last week.
"Certain files were located by the FBI in Mr. Dasari's apparent
possession, " Wexler said. Dasari has a home in Calabasas near his
former Baxter work location in Thousand Oaks, according to the
Baxter complaint. The Walnut Creek location is a residential center
for corporate employees, Wexler said.
Baxter, based in Deerfield, Ill., is asking a federal judge in
San Francisco to order Dasari to turn over any copies of the
allegedly stolen files, and to force Bayer to surrender any discs,
computers or hard drives Dasari could access while he worked at
Bayer. The suit claims that Bayer "threatens to use Baxter's
confidential information to unfairly compete with Baxter," but does
not detail the form of the alleged threat. A hearing is set for
Friday.
Bayer spokeswoman Tricia McKernan denied any company wrongdoing.
"We deny being in receipt of any of the information in question
or having any interest in it," she said. "Our policy expressly
prohibits any employee from using confidential information obtained
during employment prior to Bayer."
Dasari has an unlisted phone number in Danville, and his voice
mail message at Bayer's Berkeley unit states, "I'm on personal
leave." He could not be reached for comment.
Wexler said Baxter contacted the FBI after a tech support staffer
told executives on June 13 that Dasari had duped him into helping
copy the files onto discs. Asked if Baxter had made a criminal
complaint against Dasari, Wexler said, "We are cooperating fully in
an investigation of our former employee." Wexler said both the FBI
and federal prosecutors are involved.
C. Don Clay, first assistant U.S. attorney at the federal
prosecutor's office in San Francisco, said he could not comment on
the case or confirm that an investigation is ongoing.
Dasari allegedly signed an agreement as a condition of his
employment with Baxter to keep confidential information out of the
hands of competitors and to refrain from working for a competitor
for a year after leaving Baxter.
Baxter representatives could not name a dollar amount in damages
the company would suffer if the secret files were made available to
Bayer or other competitors. Baxter's hemophilia treatment
Recombinate brings in $1 billion a year in revenue, Wexler said, and
competes directly with a Bayer product.
"We will pursue anyone or any organization that tries to exploit
or misappropriate Baxter property," Wexler said.
In its federal civil suit filed Monday, Baxter is seeking damages
for its actual losses, plus punitive damages and triple damages
under California's trade secrets statute.
E-mail Bernadette Tansey at
btansey@sfchronicle.com.