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Masimo wins ruling against Sotera employees in bankruptcy court

Masimo Corp. said a bankruptcy court in San Diego ruled that two Sotera Wireless employees misappropriated its trade secrets.

The company alleged that former employees James Welch and David Hunt copied thousands of confidential documents before leaving the company to join Sotera Wireless, which filed for chapter 11 bankruptcy in 2016.

Sotera is now permanently enjoined from retaining, disclosing, disseminating or using confidential Masimo documents, originating from either Welch's or Hunt's Masimo computers.

Both Welch and Hunt are no longer employed by Sotera Wireless.

Masimo originally filed the lawsuit in the Superior Court of Orange County in 2013 against Welch, Hunt and Sotera Wireless.

A portion of the case concerning misappropriation by Sotera Wireless was tried in the bankruptcy court after it filed for chapter 11.

Masimo said the remaining portion of the superior court action against Welch and Hunt remains pending.