Press Release
Press Release
Press Contacts: Erik Cummins, Matt Hyams, Olivia Thomas
04.25.17
Pillsbury has earned a unanimous trial victory for leading digital agency Cuker Interactive, LLC in a long-running case against Wal-Mart Stores Inc. in the United States District Court for the Western District of Arkansas- Fayetteville Division. After more than three years of litigation, an Arkansas jury found in favor of Cuker on numerous trade secret claims and awarded Cuker $12.4 million in damages.
The dispute stemmed from a January 2014 consulting agreement between Cuker and Wal-Mart under which Cuker agreed to help modernize the e-commerce website for ASDA Stores Ltd., Wal-Mart’s business in the UK. Increasing ASDA revenues through online shopping was essential to Wal-Mart’s business objectives globally, and the company hoped that making the site mobile responsive—a web design technique that enables a consistent user experience regardless of viewing device—would bolster sales. Cuker has a market leading reputation in this area.
The relationship soured quickly, however. Immediately upon commencing work, Wal-Mart insisted that Cuker provide substantially more work than the written contract required and withheld approvals and payments in an effort to extort more work. Even worse, Wal-Mart, through numerous acts of economic coercion, compelled Cuker to turn over proprietary tools and techniques for implementing responsive design in order to share them with lower cost and off-shore vendors who would do the work for less money. As the relationship unraveled, the retail giant threatened to destroy the small company if it complained.
In July 2014, sensing that Cuker would not be intimidated and was prepared to take legal action of its own, Wal-Mart sued for breach of contract. Cuker filed a counterclaim for breach of contract, unjust enrichment and misappropriation of trade secrets. Following numerous legal challenges from both sides—including numerous motions to compel and for sanctions filed by Cuker against Wal-Mart—the trial officially commenced on April 11.
Ten days later, the Fayetteville jury returned a verdict that found Wal-Mart had breached its contract with Cuker; demanded and received work that it did not pay for (and was therefore unjustly enriched); and had willfully and maliciously misappropriated 4 separate trade secrets belonging to Cuker. The jury awarded Cuker in excess of $12.4 million in damages.
The Pillsbury trial team for Cuker was led by firmwide Intellectual Property section Co-leader Callie Bjurstrom and attorney Michelle Herrera, with support from associate Matthew Stephens. Mark Murphey Henry and Adam L. Hopkins of the Henry Law Firm served as co-counsel at trial.
“This was a drawn out, emotional, David and Goliath-type case made even more difficult because it was tried on Wal-Mart’s home turf,” said Bjurstrom. “We are absolutely thrilled to come away from it with a significant trial win for Cuker and, just as important, provide them with the vindication they so rightly deserve.”