8/3/2019 111108 McKennon Schindler Obtains 3 93 Million Damage Award

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MMMMCCCCKENNON |SCHINDLERKENNON |SCHINDLERKENNON |SCHINDLERKENNON |SCHINDLER LLPLLPLLPLLP

OBTAINS $3.93 MILLION DAMAGE AWARD FOR CLIENTSOBTAINS $3.93 MILLION DAMAGE AWARD FOR CLIENTSOBTAINS $3.93 MILLION DAMAGE AWARD FOR CLIENTSOBTAINS $3.93 MILLION DAMAGE AWARD FOR CLIENTS

IN BUSINESS DISPUTE OVER INTELLECTUAL PROPERTYIN BUSINESS DISPUTE OVER INTELLECTUAL PROPERTYIN BUSINESS DISPUTE OVER INTELLECTUAL PROPERTYIN BUSINESS DISPUTE OVER INTELLECTUAL PROPERTY

AND LICENSING RIGHTSAND LICENSING RIGHTSAND LICENSING RIGHTSAND LICENSING RIGHTS

In January 2010, McKennon | Schindler was approached by weight loss supplement company TriPharma, LLC,

about a dispute involving its exclusive rights to advertise, market and sell a revolutionary patented and

clinically studied weight loss product that was manufactured by San Diego based company Imagenetix, Inc.

TriPharma discovered Imagenetixs multiple breaches of its exclusive license agreement with Imagenetix

which had all but destroyed its ability to sell its weight loss product, destroyed much of the goodwill built up

for the product, and was threatening to destroy the years of hard work put in developing TriPharmas one-of-

a-kind weight loss beverage, which was due to hit the stores in a few short months. Shortly thereafter,

Imagenetix wrongfully terminated TriPharmas exclusive license and began to sell product directly toTriPharmas customers.

The attorneys at McKennon | Schindler LLP took immediate action and filed lawsuits in federal court against

the companies which were infringing on TriPharmas exclusive license through product sales of their own, and

filed claims in JAMS arbitration against Imagenetix for, among other things, fraud, breach of contract, and

injunctive relief, seeking damages as well as reinstatement of the exclusive license agreement.

After aggressive discovery and motion practice in the JAMS arbitration for over a year-and-a-half, and after a

fourteen (14) day arbitration hearing, TriPharma prevailed and was awarded $2.1 million in compensatory

damages, pre and post-judgment interest, and its attorneys fees and costs in both prosecuting TriPharmas

claims as well as successfully defending frivolous claims asserted against its CEO. The McKennon | Schindler

LLP attorneys were also able to prove TriPharmas claim of promissory fraud and obtained punitive damages in

the amount of $250,000, as well as personal, and joint and several liability against Imagenetix CEO William

Spencer. The total monetary award amounted to over $3.93 million.

Even more significantly, the McKennon | Schindler LLP attorneys were able to obtain the injunctive relief they

fought for so vigorously on behalf of TriPharma. The arbitrator reinstated TriPharmas exclusive license

agreement, extended the term of the agreement, provided a six month abeyance of minimum obligations so

that TriPharma could get its business back up and running, and enjoined Imagenetix from selling its weight loss

product, or any other weight loss product based on the patent or clinical studies, to any other company. The

award effectively won back the rights that TriPharma had bargained for and which had been stolen by

Imagenetix through its various activities relating to the sales and distribution of the product.

The victory for TriPharma and the McKennon | Schindler LLP law firm was a complete success. Not only did

TriPharma recoup the ability to conduct business, but TriPharma and its CEO were vindicated and awarded

significant monetary compensation for the fraud perpetrated on him and his company. In issuing the award,

the arbitrator gave particular mention to McKennonSchindler LLP partner Robert J. McKennon:

McKennon l Schindler achieved substantial success in this litigation and its chief trial attorneyRobert McKennon demonstrated exceptional skill in cross-examining [Imagenetixs CEO and

8/3/2019 111108 McKennon Schindler Obtains 3 93 Million Damage Award

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IN BUSINESS DISPUTE OVER INTELLECTUAL PROPERTY AND LICENSING RIGHTS

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other employees]. Indeed, those examinations exposed the lack of credibility of thosewitnesses, which was a decisive factor in the Arbitrators findings and rulings.

Robert J. McKennon and Reid A. Winthrop tried the case on behalf of TriPharma.