QUINTILES IMS INCORPORATED et al v. VEEVA SYSTEMS, INC.
Filing
601
OPINION AND ORDER; IQVIA's request to bifurcate the trade secret claims is GRANTED, and Veeva's request to consolidate IQVIA I and IQVIA II is DENIED. The parties shall proceed to summary judgment on IQVIA's trade secret misappropriati on claims and any related Daubert issues; that the parties are directed to utilize the following procedure: serve, but not file, opening summary judgment and Daubert briefs by June 17, 2024; serve, but not file, briefs in opposition to summary judgment and/or Daubert motions by August 19, 2024; serve, but not file, any reply papers on the opposing parties' motions by September 19, 2024. Signed by Judge Julien Xavier Neals on 5/3/2024. (ld, )
NOT FOR PUBLICATION
UNITED STATES DISTRICT COURT
DISTRICT OF NEW JERSEY
IQVIA, INC. and IMS SOFTWARE
SERVICES LIMITED,
PlaintiffsCounterclaim Defendants,
Civil Action Nos.: 17-00177 (JXN) (JSA)
19-15517 (JXN) (JSA)
v.
VEEVA SYSTEMS, INC.,
OPINION AND ORDER
DefendantCounterclaim Plaintiff.
NEALS, District Judge
IQVIA Inc. and IMS Software Services Limited (together, “IQVIA”) and Veeva Systems,
Inc. (“Veeva”) are parties to two contentious lawsuits spanning years that involve alleged trade
secret misappropriation and antitrust violations: IQVIA v. Veeva, 17-177 (JXN) (JSA) (“IQVIA I”),
and (2) IQVIA v. Veeva, 19-15517 (JXN) (JSA) and Veeva v. IQVIA, 19-18558 (JXN) (JSA)
(consolidated as “IQVIA II”). 1 Before the Court are the parties’ competing positions on whether
bifurcation of the claims is appropriate for summary judgment motion practice and trial. (IQVIA I,
ECF Nos. 576, 577.)
For the reasons set forth below, and for good cause shown, the Court finds bifurcation is
appropriate, and thus exercises its case management discretion to bifurcate IQVIA’s trade secret
misappropriation claims from Veeva’s antitrust claims for motion practice and trial. Veeva’s
antitrust counterclaims in IQVIA I, and all of IQVIA II, shall be held in abeyance pending resolution
IQVIA I consists of IQVIA’s claims for trade secret misappropriation and Veeva’s eleven (11) counterclaims alleging
antitrust violations. IQVIA II is a declaration judgment action involving only antitrust claims.
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of IQVIA’s trade secret claims.
I.
RELEVANT FACTUAL AND PROCEDURAL BACKGROUND 2
IQVIA is engaged in the business of providing market research, analytics, technology, and
services to the life sciences, medical device, and diagnostics and healthcare industries. See IQVIA
v. Veeva, 2022 WL 17990836, at *1 (D.N.J. Dec. 29, 2022). Veeva is an information and
technology services company and competitor of IQVIA. Id. IQVIA alleges that Veeva has misused
and mishandled IQVIA’s confidential and proprietary information, allegedly to develop and
improve Veeva’s own data and technology products and to assist in marketing and promoting
Veeva’s competing brand. Id. In contrast, Veeva contends that IQVIA’s business practices violate
the antitrust laws. Id.
After nearly seven years of litigation, the parties have agreed that fact and expert discovery
in both cases is substantially complete. Accordingly, on February 6, 2024, the Undersigned held
an in-person conference to address the most efficient way to conduct motion practice and trial.
(ECF No. 575.)
At the February 6th conference, IQVIA represented that, although computer forensic
discovery related to damages was outstanding and needed for trial, the trade secret
misappropriation claims on liability are ripe for summary judgment motion practice. Likewise,
Veeva represented that both cases can proceed to the summary judgment phase although some
discovery appeals remain outstanding. (See IQVIA I, Transcript of February 6, 2024 Conference
(“Tr.”) at 23:1-25:18, ECF No. 575.) However, the parties disagreed on whether IQVIA’s trade
secret claims should proceed simultaneously with Veeva’s antitrust claims. (See Tr. 26:3-28-2.)
These cases have complex and expansive histories. The parties are familiar with the factual and procedural histories,
which have been detailed in many prior opinions. The Court addresses only the relevant factual and procedural
background necessary to resolve the present dispute.
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IQVIA argued that the Court should bifurcate its trade secret claims from Veeva’s antitrust
counterclaims in IQVIA I and proceed to summary judgment and trial on those claims first, staying
Veeva’s antitrust counterclaims, as well as Veeva’s claims in the IQVIA II declaratory judgment
action. (See Tr. 27:8-36:4.) In contrast, Veeva argued that IQVIA I and IQVIA II should be
consolidated, and that summary judgment and trial should proceed simultaneously on all issues in
both cases. (See Tr. 36:8-41:22.) Given the differing views on how to proceed, the Undersigned
directed the parties to submit their case management proposals for bifurcation and/or consolidation
relating to dispositive motion practice and trial. (See Tr. 61:20-62:21.) The parties filed their
competing proposals on February 13, 2024. (See ECF Nos. 576 (IQVIA), 577 (Veeva).)
In its proposal, IQVIA reiterates the same arguments in favor of bifurcation and staying
Veeva’s antitrust counterclaims in IQVIA I and all claims in IQVIA II. (ECF No. 576.) In support
of its position, IQVIA contends that bifurcation and resolution of the trade secret claims is more
efficient and in line with the case law favoring bifurcation of intellectual property (“IP”) claims
from antitrust claims and addressing the IP claims first. (See id. at 1 & n.3.) IQVIA continues that
bifurcation will avoid jury confusion given the complexity associated with trying trade secret and
antitrust claims together; cuts to the core of the parties’ disputed issues; would narrow, eliminate,
or clarify Veeva’s antitrust claims; and presents the only realistic path to organized motion practice
and a focused trial, given the expansive record before the Court and the scope of issues involved.
(See id. at 2-8.) Finally, IQVIA argues that while some evidence and witnesses may overlap
between the trade secret and antitrust claims, there are numerous distinct and highly complex
antitrust issues that are not relevant to the trade secret claims and would inevitably cause problems
for a jury and prejudice resolution of IQVIA’s trade secret claims. (Id. at 5-6.)
Veeva counters that IQVIA I and IQVIA II should be consolidated for all purposes and that
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all claims should be decided together on summary judgment and then tried together. (ECF No.
577.) Veeva contends that the bifurcation of IQVIA’s trade secret claims would be prejudicial and
delay the complete resolution of both cases because the parties’ claims are entangled, and the
witnesses and evidence at trial will overlap. (Id. at 1, 3-6.) Further, Veeva contends that not only
would bifurcation delay the resolution of its antitrust claims, but the parties would be required to
present twice the same evidence and witnesses, engage in multiple rounds of motion practice, and
participate in two trials. (See id. at 3-6, 9.) Thus, according to Veeva, the most efficient and fair
path is to consolidate IQVIA I and IQVIA II and resolve all claims and issues at once. (Id. at 10.)
II.
DISCUSSION
Federal Rule of Civil Procedure 42(b) governs requests to bifurcate, 3 stating that “[f]or
convenience, to avoid prejudice, or to expedite and economize, the court may order a separate trial
of one or more separate issues, claims, crossclaims, counterclaims, or third-party claims.” Id.
Under Rule 42(b), a district court has broad discretion in separating issues and claims as part of its
wide discretion in trial and case management. See Barr Labs, Inc. v. Abbott Labs., 978 F.2d 98,
115 (3d Cir. 1992).
In intellectual property cases, most commonly patent cases, “experienced judges use
bifurcation and trifurcation both to simplify the issues . . . and to maintain manageability of the
volume and complexity of the evidence presented to the jury.” Ricoh Co., Ltd. v. Katun Corp.,
2005 WL 6965048, at *1 (D.N.J. July 14, 2005) (bifurcating patent and antitrust claims); see also
Indivior Inc. v. Dr. Reddy’s Labs SA, 2020 WL 2139540, at *3 (D.N.J. May 5, 2020) (bifurcation
of antitrust counterclaims appropriate); Fresenius Kabi USA, LLC v. Fera Pharms., LLC, 2017
Requests to consolidate, as opposed to bifurcate, are governed by Federal Rule of Civil Procedure 42(a). Veeva
acknowledges that its request for consolidation is essentially the opposite side of IQVIA’s bifurcation argument and
involves many of the same basic considerations. (See ECF No. 577 at 10 (“Consolidation of IQVIA I and IQVIA II is
appropriate for the same reasons that bifurcation is not.”).)
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WL 2213123, at *5 (D.N.J. May 19, 2017) (same); Otsuka Pharm. Co. v. Torrent Pharms., Ltd.,
Inc., 118 F. Supp. 3d 646, 660 (D.N.J. 2015) (same). The same approach has been applied in cases
containing both trade secret and antitrust claims. See Nasdaq Inc. v. Miami Int’l Holdings, Inc.,
2023 WL 4740753, at *3 (D.N.J. July 25, 2023) (proceeding with trade secret claims and staying
and bifurcating antitrust counterclaims). “In deciding whether to bifurcate, courts generally
consider whether bifurcation will conserve judicial resources, improve the jury’s comprehension
of the issues, and avoid prejudice.” Indivior, 2020 WL 2139540, at *3 (D.N.J. May 5, 2020) (citing
Ricoh, 2005 WL 6965048, at *1). A party seeking to bifurcate claims bears the burden to show it
is warranted. See Depomed, Inc. v. Purdue Pharma, L.P., 2013 WL 6190380, at *7 (D.N.J. Nov.
26, 2013).
This Court concludes that IQVIA has met its burden of showing bifurcation of its trade
secret claims is appropriate. Indeed, the Court finds that bifurcation of these claims would benefit
any potential jury by improving the jury’s understanding of the issues, avoid potential prejudice,
expedite the proceedings, and serve the interests of justice and judicial economy. 4
Turning first to jury issues, bifurcation would considerably benefit any jury. The parties
concede and agree that the cases are complex. And given their expansive case histories spanning
more than seven years and their voluminous records, it would be impractical to argue otherwise,
particularly given the nature of the antitrust claims and the proofs associated with them. See, e,g.,
Bohack Corp. v. Borden, Inc., 599 F.2d 1160, 1169 n.9 (2d Cir. 1979) (noting that “antitrust cases
are notoriously lengthy and tortuously complex”). The reality is that the issues in these cases are
not “as intuitive to the average reasonable juror as more common actions, such as actions for
Because the Court concludes, for the reasons herein, that IQVIA has met its burden to show that bifurcation of its
trade secrets claims is warranted, it correspondingly concludes, for the same reasons, that Veeva has not met its burden
to show that consolidation of IQVIA I and IQVIA II is warranted. See In re Consolidated Parlodel Litig., 182 F.R.D.
441, 444 (D.N.J. 1998) (party seeking consolidation bears burden to establish it is appropriate).
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personal injury or breach of contract would be.” Ricoh, 2005 WL 6965048, at *1.
Veeva argues that many of the same witnesses have knowledge allegedly relevant to both
the trade secret and antitrust claims. (ECF No. 577 at 4-5.) This weighs against consolidation and
in favor of bifurcation, however, because testimony from the same witnesses about distinctly
different subjects and facts is likely to muddle the evidence presented and confuse the jury’s
consideration of the separate claims, defenses, and legal theories. Further, palpable logistical
problems are presented when a juror must parse separate, complex testimony from the same
witness relevant to one claim as opposed to another. Moreover, Veeva’s antitrust claims are
different in terms of the evidence and proofs involved. (See ECF No. 576 at 7-8.) The claims cover
different products and time periods, different alleged markets, and potentially different conduct.
(Id.) Asking a single jury to consider all the claims at once will very likely result in jury confusion
and weighs strongly in favor of bifurcation.
As to prejudice, Veeva argues that it would be prejudiced by further delaying adjudication
of the antitrust claims. (ECF No. 577 at 6.) Veeva also contends that it could be impeded in
defending against the trade secret claims should it not be allowed to reference anticompetitive
behavior in defense of IQVIA’s trade secret claims. (Id. at 7.) This Court disagrees. While delay
is not desirable or insignificant, no injunctive or emergent relief was ever sought in this case, and
the Court has attempted to move this case through years of contentious discovery to a resolution
on the merits. That said, any additional delay that would result from bifurcation does not outweigh
the benefit to the Court (and jury) that would result from the focused and orderly presentation of
evidence on the limited set of trade secret claims. See, e.g., Indivior, 2020 WL 2139540, at *4
(“Courts in this District are not apt to deny bifurcation where prejudice is based upon the purported
delay of adjudication.”). Finally, Veeva’s concern that it would not be able to introduce evidence
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to defend against trade secret claims is unfounded and can be addressed, if necessary, through in
limine motions. For these reasons, any claimed prejudice to Veeva is not a sufficient basis to deny
bifurcation.
Finally, bifurcation would conserve court resources, further the interests of justice, and
expedite the proceedings. All parties are eager to proceed to summary judgment and move the case
forward, as is the Court. Limiting the initial summary judgment motion to the trade secret claims
would narrow the record for review and allow the Court to promptly issue a decision. The Court
notes, however, that the parties have diametrically different views on the remainder of the cases
following the Court’s decision on summary judgment: IQVIA contends that if it prevails on the
trade secret claims, such a ruling will essentially eliminate Veeva’s antitrust claims; Veeva
contends its antitrust claims will proceed regardless of the outcome of the summary judgment
motions on the trade secret claims. (ECF No. 576 at 9-10; ECF No. 577 at 8.) As a practical matter,
the resolution of the trade secret claims would impact the antitrust claims. As such, this Court finds
both party and court resources will be best conserved by first addressing the threshold issues
surrounding the trade secret claims.
III.
CONCLUSION
For the foregoing reasons, IQVIA’s request to bifurcate the trade secret claims is
GRANTED, and Veeva’s request to consolidate IQVIA I and IQVIA II is DENIED. The parties
shall proceed to summary judgment on IQVIA’s trade secret misappropriation claims and any
related Daubert issues.
With respect to briefing the motions, to preclude piecemeal extensions of briefing and due
to the extended schedule requested, the parties are directed to utilize the following procedure:
•
serve, but not file, opening summary judgment and Daubert briefs by June 17,
2024;
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•
serve, but not file, briefs in opposition to summary judgment and/or Daubert
motions by August 19, 2024; and
•
serve, but not file, any reply papers on the opposing parties’ motions by September
19, 2024.
Once all motion papers have been served, the parties shall, within five (5) days thereafter,
file on the docket the moving papers, the opposition papers, and the reply papers simultaneously
under separate docket entries. Opening and opposition summary judgment briefs are not to exceed
forty (40) pages. Reply briefs shall not exceed twenty (20) pages. Any Daubert briefs shall be filed
in accordance with the standing page limitations set forth in the Local Civil Rules. All briefs shall
be presented in Times New Roman 12-point font, double-spaced, and with 1-inch margins.
SO ORDERED.
_________________________
JULIEN XAVIER NEALS
United States District Judge
Dated: May 3, 2024
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