Veeva Memo to Customers on Medidata Lawsuit
February 28, 2017
To: Veeva Customers
Re: Medidata Lawsuit Against Veeva
This document provides information about the Medidata lawsuit against Veeva.
Lawsuit Summary: Medidata filed a lawsuit against Veeva and five former Medidata employees on January 26, 2017 claiming that the former employees, who are now employed by Veeva, had improperly used Medidata confidential information for Veeva’s benefit. Medidata also claims that the employment of some of these individuals violated non-compete provisions in their Medidata employment agreements.
These are only claims by Medidata. We believe these claims are not valid.
No Impact to Customers: For the reasons set out below, we believe the lawsuit has no merit, poses no threat to Veeva customers, and is designed to stall Veeva’s entry into the EDC and CTMS product categories where Medidata is established.
The Former Medidata Employees: The five employees Medidata sued had an average tenure with Medidata of over eight years. These were loyal Medidata employees who contributed greatly to Medidata over many years. Veeva has employed four of the five employees for more than five months. Two of those employees had not worked for Medidata in over two years. Suing these employees was not the right thing to do. Medidata dropped the five former employees from the lawsuit as of February 28, 2017.
How Medidata Is Using the Lawsuit: Medidata originally posted the complaint on the press release section of its website so that customers and financial analysts would see it immediately. We are also aware that Medidata executives have proactively brought up the lawsuit with mutual customers of Veeva and Medidata and forwarded the complaint to such customers. Tellingly, Medidata has not sought any expedited or emergency relief in the case. We believe this indicates that Medidata’s intention is to create a cloud over Veeva’s competitive offerings and slow down Veeva’s progress in clinical data management.
Veeva Indemnity to Customers: Medidata has not sought to limit any customer’s use of Veeva products via this lawsuit. To the extent Medidata ever attempts to do that, Veeva has contractually committed to correct any infringement and to indemnify its customers (without limit) with respect to any Medidata claims. In our view, the worst case outcome of this lawsuit is extended and costly litigation for Veeva but no impact to customers.
Veeva’s Intentions: We will continue to innovate and serve the life sciences industry. We introduced our Vault platform for regulated content management in 2011, before Veeva hired any of the former Medidata employees named in the complaint. Our goal is to bring clinical technology into the modern era with applications that are built on our best-in-class cloud technology.
Questions: If you have further questions regarding the Medidata lawsuit, please contact your Veeva account representative, who will arrange to have your questions addressed.
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