Lumenous sues Jiangyin Zhongpei for stealing trade secrets

A Santa Clara medical technology company, Lumenous Device Technologies, has filed a lawsuit against its joint-venture partner, Jiangyin Zhongpei Technology, and four of the firm’s executives. The lawsuit alleges that the Chinese partners looted Lumenous’s coffers and stole its trade secrets. Lumenous had set up the joint-venture company, Jiangyin Peier Technology, more than 20 years ago to serve customers in Asia and the Middle East. However, a bureaucratic problem arose just as Jiangyin Peier was about to go public, leading to a battle over the company’s ownership. Shen Bin, the general manager of Jiangyin Peier, is accused of orchestrating the theft of Lumenous’s property.

Ownership battle and alleged theft
The ownership battle between Lumenous Device Technologies and Jiangyin Zhongpei Technology began when a “registration defect” complicated the ownership picture of Jiangyin Peier just before the company was set to go public. Lumenous’s founder and co-owner, Todd Dickson, flew to China to assert control over Jiangyin Peier but was kicked out after the police were called. The lawsuit alleges that Shen Bin, the general manager of Jiangyin Peier, saw an opportunity to remove Lumenous completely from the ownership and gain a larger stake in the company. Shen and her alleged co-conspirators then proceeded to steal Lumenous’s trade secrets and embezzle millions of dollars.

The lawsuit and response
Lumenous Device Technologies filed the lawsuit against Jiangyin Zhongpei Technology and four of its executives, including Shen Bin. The lawsuit claims that Shen and her alleged cabal, referred to as the “Shen Enterprise,” sprang into criminal action to steal Lumenous’s rightful property. Jiangyin Zhongpei Technology and Shen have not yet responded to the allegations, and it is unclear if they have legal representation for the case. Bollyinside