EmpireMED, LLC v. Rachel Greenan, et al.

CourtDistrict Court, E.D. Pennsylvania
DecidedMarch 9, 2026
Docket2:25-cv-04893
StatusUnknown

This text of EmpireMED, LLC v. Rachel Greenan, et al. (EmpireMED, LLC v. Rachel Greenan, et al.) is published on Counsel Stack Legal Research, covering District Court, E.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
EmpireMED, LLC v. Rachel Greenan, et al., (E.D. Pa. 2026).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF PENNSYLVANIA

EMPIREMED, LLC, : CIVIL ACTION Plaintiff, : : v. : : RACHEL GREENAN, et al., : No. 25-cv-4893 Defendants. :

MEMORANDUM KENNEY, J. March 9, 2026 The instant case arises out of an alleged violation of a non-compete agreement. Counterclaim Defendant, EmpireMED, LLC (“EmpireMed”) and Third-Party Defendants Neel Jhaveri and Danielle Spencer now move for partial dismissal of Rachel Greenan’s Amended Counterclaim and Third-Party Complaint pursuant to Federal Rule of Civil Procedure 12(b)(6). ECF No. 45. For the reasons set forth below, the Motion to Dismiss (ECF No. 45) will be GRANTED in part and DENIED in part. I. BACKGROUND

Plaintiff EmpireMED initially filed a ten-count Complaint against Defendants Greenan and Precision Medical Products (“Precision”) for violations of the Defend Trade Secrets Act, 18 U.S.C. § 1832, et seq.; the New Jersey Trade Secrets Act, N.J. STAT. ANN. § 56:15–1, et seq.; misappropriation of Plaintiff’s proprietary information; breach of contract; breach of the duty of loyalty; tortious interference with prospective economic advantage; tortious interference with a contractual relationship; and unfair competition. ECF No. 1 ¶¶ 73–165. Along with the Complaint, EmpireMED filed a Motion for a Temporary Restraining Order (“TRO”) and Preliminary Injunction (“PI”). ECF No. 3. After a conference with the Parties, the Court granted EmpireMED’s Motion for a TRO on September 2, 2025. ECF No. 15. Specifically, the Court (1) temporarily enjoined Greenan from using or disclosing EmpireMED’s trade secrets or confidential information and from soliciting, servicing, and/or selling to any EmpireMED customer; and (2) enjoined Precision from directly or indirectly soliciting EmpireMED customers who have been solicited or serviced by Greenan, soliciting EmpireMED customers as to whom

Greenan provided EmpireMed’s information to Precision, and from using or disclosing any of EmpireMed’s trade secret or confidential information, to the extent such information was provided by Greenan directly or indirectly through a third party. Id. at 1–3. On September 15, 2025, after a short period of discovery, the Parties reached an agreement resolving EmpireMED’s Motion for a PI. ECF No. 27. The Parties agreed that Greenan would be enjoined until 11:59 P.M. on September 1, 2026, from directly or indirectly soliciting, servicing, and/or selling to any EmpireMED customer any bone stimulator product, including, but not limited to, Xstim. ECF No. 27 at 2. The Parties further agreed that Greenan would be enjoined until 11:59 P.M. on June 2, 2026, from directly or indirectly soliciting, servicing, and/or selling to any EmpireMed customers. Id.1 Accordingly, the Court denied the Motion for a PI as moot. Id.2

On September 30, 2025, EmpireMED filed an Amended Complaint, asserting the same causes of action, but naming an additional Defendant, Alyssa Vera. ECF No. 28. On October 14, 2025, Greenan answered the Amended Complaint. ECF No. 30. Greenan denied the substance of EmpireMED’s allegations contained in the Amended Complaint and asserted numerous affirmative defenses. Id. Greenan also asserted crossclaims against Precision and Vera for

1 As relevant here, the Parties stipulated to the definition of “customers” to include the providers in New York and New Jersey who have purchased bone stimulator products from EmpireMed over the prior twelve (12) months. Id.

2 Greenan also agreed to submit to the Court’s jurisdiction, thereby abandoning her previous arguments that the Court lacked personal jurisdiction over her. See ECF No. 18-1 at 4, contribution and indemnification, counterclaims against EmpireMED, and claims against third- party defendants Neel Jhaveri, Danielle Spencer, and John/Jane Does 1–10. Id. Greenan’s Third- Party Claim and Counterclaim asserted claims for breach of contract, defamation/slander per se, intentional interference with prospective contractual relationship, and unjust enrichment. ECF No.

30 ¶¶ 51–85. Counterclaim Defendant, EmpireMED, together with Third-Party Defendants Neel Jhaveri and Danielle Spencer moved for partial dismissal of Greenan’s counterclaims for defamation /slander per se, tortious interference with a prospective contractual relationship, and unjust enrichment. ECF No. 35. In response to the Partial Motion to Dismiss, ECF No. 35, on December 2, 2025, Greenan Amended her Third-Party Complaint and Counterclaim asserting the same claims against EmpireMED, Neel Jhaveri, Danielle Spencer, and Jane/John Does 1–10. ECF No. 41. Accordingly, the Motion to Dismiss, ECF No. 35, was dismissed as moot. ECF No. 44. However, upon receipt of Greenan’s Amended Third-Party Complaint and Counterclaim, Counterclaim Defendant, EmpireMED, and Third-Party Defendants Neel Jhaveri and Danielle Spencer

(hereinafter, the “Counterclaim Defendants”) renewed their Partial Motion to Dismiss. ECF No. 45. The matter has been fully briefed and has been considered on the basis of the submissions, without oral argument. See ECF Nos. 53, 58. II. DISCUSSION

A. Choice-of-Law

All of Greenan’s counterclaims sound in state law. As discussed below, the Parties dispute the applicable state law with regard to Counts II (defamation/slander per se) and III (intentional interference with prospective contractual relations). Infra Part II B–C. As the forum state, Pennsylvania’s choice-of-law rules dictate which state law the Court must apply to resolve the Partial Motion to Dismiss with regard to each of Greenan’s counterclaims. See Klaxon Co. v. Stentor Elec. Mfg. Co., 313 U.S. 487, 496 (1941). Pennsylvania’s choice-of-law rules require federal courts to engage in a three-step analysis. See Hammersmith v. TIG Ins. Co., 480 F.3d 220, 230–31 (3d Cir. 2007) (citations omitted); see also Dent v. Hyatt Hotels Corp., No. CV 24-6354, 2025 WL 293491, at *1 n.1 (E.D. Pa. July 11, 2025). The court must (1) determine whether an

“actual or real conflict [exits] between the potentially applicable [state] laws[;]” if so, a court must next (2) analyze the underlying governmental policies for each state law in conflict and “classify the conflict as a ‘true,’ ‘false,’ or an ‘unprovided-for situation[;]’” and (3) determine which state has the “greater interest in the application of its law.” Hammersmith, 480 F.3d at 230–31 (citations omitted). B. Defamation/Slander Per Se First, the Counterclaim Defendants have moved to dismiss Greenan’s defamation/slander per se counterclaim (Count II) for failure to state a claim. ECF No. 45 at 17. Greenan’s

counterclaim for defamation/slander per se—referred to by the Court as a claim for defamation and defamation per se for consistency—is based on two sets of statements allegedly made by Jhaveri and Spencer to Greenan’s former customers located in New York and New Jersey. See ECF No. 41 ¶¶ 42–44, 48, 67. Specifically, Greenan alleges that Jhaveri made false and defamatory statements to Dr. Peretz of the New York Spine Institute between August 20, 2025 and August 25, 2025, that Greenan “was fired for violating her non-compete with EmpireMED and being sued by the Plaintiff[.]” Id. ¶¶ 42–43. Greenan alleges that on September 2, 2025, Jhaveri made statements to the Somers Orthopedic Surgery & Sports Medicine Group’s Carmel, New York office that Greenan “was engaged in illegal activity and was being sued by EmpireMED because of the allegedly illegal activity.” Id. ¶ 44.

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