Key Takeaways
- • A Delaware federal jury awarded Yale University and Biohaven Therapeutics a combined $4 million in damages against Boston-based venture capital firm RA Capital Management and Avilar Therapeutics for willful and malicious misappropriation of trade secrets ($2 million for breach of confidential disclosure agreement; $2 million for trade secret misappropriation).
- • RA Capital allegedly misappropriated Yale's MODA technology—a proprietary medical platform developed by Yale chemistry professor David Spiegel that captures and degrades disease-causing proteins through the liver—after signing a confidential disclosure agreement and expressing partnership interest.
- • The jury rejected eight of nine alleged trade-secret claims against RA Capital, awarding plaintiffs substantially less than the damages sought, and RA Capital signaled intent to pursue post-trial motions and appellate remedies while prosecuting patent infringement counter-claims against Biohaven.
- • The lawsuit, filed in Delaware federal court in 2023, centered on allegations that RA Capital breached the confidential disclosure agreement by establishing a competing company (Avilar Therapeutics) using the misappropriated Yale-developed technology rather than pursuing the proposed partnership.
Summary
A Delaware federal jury has determined that venture capital firm RA Capital Management and its affiliated company Avilar Therapeutics willfully and maliciously misappropriated trade secrets owned by Yale University and licensed to Biohaven Therapeutics, awarding the plaintiffs $4 million in combined damages. The verdict, reached after a five-day trial in 2026, represents a significant decision in a high-stakes intellectual property dispute within the biotech investment sector and carries implications for confidentiality obligations in venture capital partnerships.
The litigation centered on Yale's MODA technology, a proprietary medical platform developed by Yale chemistry professor David Spiegel. The technology functions by capturing and degrading disease-causing proteins through the liver, representing a novel therapeutic approach with potential commercial value. According to court records and trial testimony, RA Capital received detailed information about the technology after signing a confidential disclosure agreement and expressing interest in a partnership opportunity with Yale and Biohaven. Rather than pursuing the proposed collaboration, lawyers for Yale alleged that RA Capital used the confidential information to establish a competing company—Avilar Therapeutics—built around the misappropriated technology.
The jury awarded $2 million for RA Capital's breach of the confidential disclosure agreement and an additional $2 million for trade secret misappropriation, finding that RA Capital's actions met the legal threshold for willful and malicious conduct. Yale's legal representatives Nick Spear and Kalpana Srinivasan stated in a post-verdict statement that "the jury recognized the importance of protecting the confidential scientific advancements that universities like Yale work so hard to develop," underscoring broader intellectual property protection concerns for academic institutions licensing technology to commercial entities.
RA Capital's response, issued through General Counsel Craig Randall, emphasized that the jury rejected eight of nine alleged trade-secret claims and awarded damages significantly below the amount sought by plaintiffs. Randall maintained that "RA Capital and Avilar continue to maintain that these claims lack merit and that there was no wrongdoing," signaling the firm's intention to pursue post-trial and appellate remedies. Additionally, RA Capital indicated plans to prosecute patent infringement counter-claims against Biohaven, suggesting the litigation may extend through additional proceedings in coming months.
The litigation centered on Yale's MODA technology, a proprietary medical platform developed by Yale chemistry professor David Spiegel. The technology functions by capturing and degrading disease-causing proteins through the liver, representing a novel therapeutic approach with potential commercial value. According to court records and trial testimony, RA Capital received detailed information about the technology after signing a confidential disclosure agreement and expressing interest in a partnership opportunity with Yale and Biohaven. Rather than pursuing the proposed collaboration, lawyers for Yale alleged that RA Capital used the confidential information to establish a competing company—Avilar Therapeutics—built around the misappropriated technology.
The jury awarded $2 million for RA Capital's breach of the confidential disclosure agreement and an additional $2 million for trade secret misappropriation, finding that RA Capital's actions met the legal threshold for willful and malicious conduct. Yale's legal representatives Nick Spear and Kalpana Srinivasan stated in a post-verdict statement that "the jury recognized the importance of protecting the confidential scientific advancements that universities like Yale work so hard to develop," underscoring broader intellectual property protection concerns for academic institutions licensing technology to commercial entities.
RA Capital's response, issued through General Counsel Craig Randall, emphasized that the jury rejected eight of nine alleged trade-secret claims and awarded damages significantly below the amount sought by plaintiffs. Randall maintained that "RA Capital and Avilar continue to maintain that these claims lack merit and that there was no wrongdoing," signaling the firm's intention to pursue post-trial and appellate remedies. Additionally, RA Capital indicated plans to prosecute patent infringement counter-claims against Biohaven, suggesting the litigation may extend through additional proceedings in coming months.
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