WeInfuse LLC v. Endue Inc

CourtDistrict Court, N.D. Texas
DecidedJuly 24, 2024
Docket3:23-cv-02595
StatusUnknown

This text of WeInfuse LLC v. Endue Inc (WeInfuse LLC v. Endue Inc) is published on Counsel Stack Legal Research, covering District Court, N.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
WeInfuse LLC v. Endue Inc, (N.D. Tex. 2024).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF TEXAS DALLAS DIVISION

WEINFUSE LLC, § § Plaintiff, § § v. § Civil Action No. 3:23-CV-02595-E § ENDUE INC, § § Defendant. § § §

MEMORANDUM OPINION AND ORDER Before the Court is Defendant Endue Inc.’s Motion to Dismiss, which seeks to dismiss all claims Plaintiff WeInfuse LLC asserts. (ECF No. 15). Having carefully considered the Motion to Dismiss; the Parties’ briefing; appendices; and the applicable law, for reasons that follow, the Court GRANTS Endue’s Motion to Dismiss. The Court further DENIES WeInfuse’s embedded motion for leave to amend its complaint. I. BACKGROUND A. Dispute and the Parties This case arises from a dispute involving WeInfuse’s acclaimed “confidential and propriety information” and Endue’s allegedly “misleading statements made into the marketplace.” (ECF No. 10 at 7). It is undisputed that WeInfuse is a Texas limited liability company (i) with an office in Dallas and (ii) with its principal place of business in Texas. (ECF No. 10 at 1). It is undisputed that Endue is a Delaware corporation with its principal place of business in Maine. (ECF No. 10 at 1); (ECF No. 15 at 17). As amended, WeInfuse pleads as to its software and efforts to maintain its acclaimed confidential and proprietary information as follows: [WeInfuse] specializes in providing software-as-a-service to medical infusion centers.[] WeInfuse grants licenses for its proprietary software (referred to as the “Software”) to clients, enabling the streamlined administration of infusions to patients. . . . . The Software is WeInfuse’s intellectual property, and it enjoys copyright and trade secret protection as well as other legal protections. The copyright to the Software has been registered with the United States Copyright Office under Registration Number TXu002191941. The Software is only accessible to authorized clients who sign the WEINFUSE SOFTWARE LICENSE AGREEMENT (the “License Agreement”) and a Business Associate Agreement (“BAA”). . . . . WeInfuse’s secured Software platform stores and maintains confidential and proprietary information. By way of illustration, clients use WeInfuse’s Software to: i. Maintain patient information, including confidential medical information; ii. Upload and access patient related data, including real-time progress reports, patient intake forms, treatment notes, and insurance information; iii. Maintain historical billing, pricing, invoicing, and accounts receivable data for all patients; iv. Monitor inventory and vial scanning; and v. Assist with chair-optimized patient scheduling and patient engagement. . . . In addition to utilizing a secure portal that is password protected and only accessible via login credentials belonging to license holders, WeInfuse requires its license holders to abide by the License Agreement that specifically prohibit the use or disclosure of WeInfuse’s confidential proprietary information other than in connection with authorized uses for legitimate business purposes.

(ECF No. 10 at 2-4) (footnote omitted). As to Endue, WeInfuse pleads: In some of its pitch slides, Endue has used edited screenshot images of WeInfuse’s Software (the “Screenshots”). These Screenshots portray an interface of WeInfuse’s software with redacted sections concealing private and protected patient information.

[] Because the Screenshots represent displays of the Software accessible solely to licensed users with passwords, Endue’s possession of these materials demonstrates that Endue acquired them, without WeInfuse’s authorization, from a client who violated the terms of the License Agreement and/or User Agreement. These slides explicitly reveal that Endue, an unauthorized entity, breached the authorized access to such data and may have accessed and viewed confidential, protected health information in the process.

[] To make matters even worse, in the slides and marketing materials, Endue made false, misleading, and damaging statements about WeInfuse. The slides show anonymous quotations, which are worded as if to convey that they came from clients of Welnfuse but give no attribution or context to the statements. An example of this is depicted below for the Court’s reference.

Welnfuse is primary vertical competitor “Don't do anything well, but no alternative” Others we rarely encounter

17. One slide illustrates a chart comparing Welnfuse’s federally registered logo alongside one-to-three-star symbols across different categories (“Intake & Processing,” “Financial Support,” etc.), contrasting it with Endue, which displays three to four stars in those same categories. This graphic, shown below, suggests that the stars signify survey or poll outcomes, yet fails to provide evidence for the alleged “ratings.” These seem to be entirely concocted by Endue, aiming to deceive investors, customers, clients, and other stakeholders in the infusion industry who may view these materials. srcorsna tata ache pe =EendVve UY Weinfuse [conn I i siti cell PA e708) ety AICs/OICs/ — a Sets sto ites sD Home(nmew)

Heporting □ pg Pe * Billing 4& Claims elo eee Xr Commentary eta cca

(ECF No. 10 at 4-5). Welnfuse pleads that it sent Endue a cease and desist letter on October 11, 2023, but that “Endue fail[ed] to provide a substantive response.” (ECF No. 10 at 5). B. Procedural History This is not the first proceeding involving this dispute between Welnfuse and Endue. (ECF No. 10 at 5-7). After sending its October 11, 2023 cease and desist letter, WeInfuse explains that

MEMORANDUM OPINION AND ORDER Page 3 of 15

it brought a Texas Rule of Civil Procedure 202 proceeding against Endue in “effort to obtain relevant documents and testimony.” (ECF No. 10 at 6).1 It is undisputed that WeInfuse dismissed this Rule 202 Proceeding. (ECF No. 34 at 13). Nevertheless, on November 22, 2023, WeInfuse initiated this litigation. As amended,

WeInfuse asserts claims against Endue for (i) misappropriation of trade secrets and confidential information under the Defend Trade Secrets Act (DTSA) and the Texas Uniform Trade Secrets Act (TUTSA); (ii) tortious interference with existing contracts; (iii) business disparagement; (iv) unfair competition; and (v) copyright infringement. (ECF No. 10 at 7-15). On February 12, 2024, Endue filed a motion to dismiss—which seeks to dismiss all claims under Federal Rule of Civil Procedure 12—arguing (i) the Court lacks personal jurisdiction over Endue and (ii) WeInfuse has failed to state a claim upon which relief can be granted. (ECF No. 15); see Fed. R. Civ. P. 12(b)(2), (6). WeInfuse has responded and included an embedded motion for leave to further amend its complaint. (ECF No. 34). Endue has replied. (ECF No. 43). Having been fully briefed, the Motion to Dismiss is ripe for adjudication.

II. LEGAL STANDARDS A. Federal Rule of Civil Procedure 12(b)(2) Federal Rule of Civil Procedure 12(b)(2) provides: “a party may assert the following defenses by motion: . . . (2) lack of personal jurisdiction[.]” Fed. R. Civ. P. 12(b)(2). When a nonresident defendant presents a motion to dismiss for lack of personal jurisdiction, the plaintiff bears the burden of establishing the district court’s personal jurisdiction over the defendant but need only make a prima facie case supporting personal jurisdiction at the Rule 12(b)(2) stage. In

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Bluebook (online)
WeInfuse LLC v. Endue Inc, Counsel Stack Legal Research, https://law.counselstack.com/opinion/weinfuse-llc-v-endue-inc-txnd-2024.