Second Lawsuit
EOFlow, the developer of the wearable insulin pump EOPATCH, has become embroiled in an intellectual property infringement lawsuit in the United States.
EOFlow announced on Aug. 9 that Insulet Corporation, a U.S.-based company specializing in the development of wearable insulin pumps, has filed a lawsuit against them for intellectual property infringement and unfair competition. The jurisdiction for the case is the United States District Court for the District of Massachusetts, Case No. 1:23-cv-11780.
The claim amount has not yet been determined, and EOFlow has stated that they will issue a corrective disclosure once the specific litigation amount is finalized.
Previously, Insulet Corporation had also filed a patent infringement lawsuit against Menarini, EOFlow’s European partner, in Germany, seeking an injunction against the sale of the insulin pump product GlucoMen Day Pump, known domestically as EOPATCH.
EOFlow is scheduled to be acquired by global medical device company Medtronic within the year. Kim Jae-jin, the largest shareholder of EOFlow, signed a stock purchase agreement involving a change of the largest shareholder with Medtronic Korea Holdings, a company established by Medtronic in May.
Medtronic’s total acquisition price for EOFlow is US$738 million. Medtronic, which owns more than half of the global general insulin pump market, has also secured wearable insulin pump technology through the acquisition of EOFlow.
Meanwhile, it has been reported that EOFlow executives made approximately twice the profit through market purchases before announcing Medtronic’s big public tender deal. The issue is that the executives who bought shares using borrowed funds from EOFlow did so less than half a year before the announcement of the significant information of stockpiling and public tender.
According to Article 174 of the Financial Investment Services and Capital Markets Act, insiders who become aware of undisclosed important information are prohibited from trading securities, leading to controversy.