An order from the First Circuit sent the parties back to the District Court for more hearings this week on whether the judge should block former Optum executive David Smith from working for the Amazon-backed healthcare venture.
Parties involved in a trade secrets dispute between Optum Inc. and David Smith, who accepted a senior position with Amazon's healthcare venture in December, must return this week to the District Court in Boston, where new details about Amazon's still-gestating project could be forced into public view.
U.S. District Judge Mark Wolf ordered the parties to appear Wednesday afternoon for more oral arguments on Optum's motion for a temporary restraining order (TRO) to block Smith from working for his new employer, which Optum calls "ABC" because it's backed by Amazon, Berkshire Hathaway, and JPMorgan Chase. Wolf said he hopes to issue a decision verbally on Thursday or Friday.
There's a separate motion on the table as well. The media companies that own The Boston Globe and The Wall Street Journal have intervened jointly in the case and are arguing that the full transcript of a hearing held last month should be made public. News reporters attending the hearing were reportedly tossed out of the courtroom for a portion of the testimony by Jack Stoddard, ABC's chief operating officer, so Stoddard could speak about the venture's strategy. Last month's hearings shook loose a few crumbs of information about what the Amazon-backed venture helmed by CEO Atul Gawande has in store.
Attorneys for Smith argue ABC isn't a competotor to Optum, but Optum complains the venture is still figuring out its model and taking a "haphazard and disingenuous approach" to making sure Smith doesn't divulge Optum's trade secrets. Smith's new job descriptioin, albeit vague, seems to align with what he had been doing for Optum.
Related: 'Purely Private Dispute'? Amazon-Bound Exec Escalates Optum Trade Secrets Suit
Related: Amazon-Backed Initiative Hires Chief Technology Officer, Seeks Tech Talent
Related: What's a 'Competitor'? Optum Sues VP Who Left for Amazon-Backed Initiative
Wolf issued the order Friday after the First Circuit Court of Appeals remanded to the District Court "for the limited purpose of resolving the pending motion for TRO as expeditiously as possible."
Smith had appealed to the First Circuit, arguing that the proceedings must be moved into closed-door arbitration, rather than the public record of a federal courtroom. The First Circuit judges haven't said whether they agree with Smith's argument or the District Court's position, so the matter could quickly result in more appellate proceedings.
Steven Porter is an associate content manager and Strategy editor for HealthLeaders, a Simplify Compliance brand.
Photo credit: Photo credit: Editorial credit: Sundry Photography / Shutterstock.com