Trade Secret Report
Irell & Manella LLP
Defendants in a lawsuit involving trade secrets related to medical businesses in Latin America moved to dismiss the complaint as untimely under relevant statutes of limitations and as improper extraterritorial application of U.S. trade secret law. The Southern District of New York denied the motions. Regarding the statute of limitations, the DTSA provides that the three-year statute of limitation is tolled until the misappropriation "is discovered or by exercise of reasonable diligence should have been discovered." The court held that although defendants raised reasonable arguments that plaintiff should have known of the alleged misappropriation a year before filing suit, where the complaint did not "clearly show" plaintiff’s claim is out of time, dismissal under 12(b)(6) is improper.