Turned $5.8M Jury Verdict into $13.5M Settlement for Inventor in Dispute Brought Against La-Z-Boy for Unauthorized Use of Trade Secrets Related to Power Motion Furniture
February 28, 2017
Megdal Associates LLC v. La-Z-Boy, Inc, (S.D. Fla. 2016)
In November 2014, Megdal Associates filed a lawsuit against La-Z-Boy for breach of a 2002 technology license agreement which obligated La-Z-Boy to pay Megdal Associates royalties for the sale of products that used any aspects of Megdal Associates’ trade secrets and inventions relating to power motion furniture. A federal jury in Ft. Lauderdale found that La-Z-Boy breached the license agreement by failing to pay royalties on its new, successful power motion furniture products, and awarded Megdal $5.7 million in damages. The award was increased to $6 million with the award of prejudgment interest. While the case was pending on appeal, the parties settled the case, with La-Z-Boy paying Megdal Associates $13.5 million.
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