A healthcare marketing data company has accused a medical media firm of unlawfully retaining and using its proprietary database, sparking a legal battle over trade secrets and contractual breaches. Medical Marketing Service, Inc. (MMS) filed a complaint in the United States District Court for the Northern District of Illinois on December 2, 2024, against The Wyanoke Group, Inc., which operates under the name Healio.
According to the lawsuit, MMS alleges that Healio continued to use its comprehensive database of physician information even after terminating their subscription agreement. This database is crucial for companies like Healio that aim to market products and services to healthcare providers with precision. MMS claims that despite Healio's assurances of data deletion upon ending their contract, evidence suggests otherwise. "The data that MMS provides to any customer contains certain 'seeds': email addresses that go back to MMS," states the complaint, indicating these seeds revealed unauthorized usage by Healio post-termination.
MMS asserts that this breach resulted in significant financial damages and poses a threat to its business operations by potentially exposing trade secrets to competitors. The plaintiff highlights multiple instances where Healio allegedly violated their agreement, including refusing an audit of its systems and failing to provide quarterly customer lists as promised. These actions are claimed to have caused millions in damages due to unauthorized data use and potential devaluation of MMS's proprietary lists.
The lawsuit further accuses Healio of violating both federal and state trade secret laws by misappropriating confidential information. MMS argues that without court intervention, there is a risk of irreparable harm from potential disclosures of sensitive data to third parties or competitors. As part of its relief, MMS seeks injunctive measures preventing further misuse or disclosure of its trade secrets and demands compensation for damages incurred.
Representing Medical Marketing Service, Inc., attorneys Kevin J. Mahoney and Bart A. Lazar from Seyfarth Shaw LLP have taken up the case before Judge [Name] under Case ID 1:24-cv-12383.