December 2018 – After a lengthy trial, Martin LLP client Custopharm, Inc. obtained a ruling from Connecticut Superior Court Judge Charles T. Lee restoring its membership interest in a limited liability company named PJW Investment Associates LLC that had been formed to develop and obtain FDA approval for a generic version of the widely-used and highly profitable product. Martin LLP litigation partner Mark Gregory and co-counsel Bradley L. Jacobs of San Diego, California tried the case for Custopharm.
Following a decision by PJW’s manager, Peter J. Werth, Jr., to unilaterally dissociate Custopharm from PJW, Custopharm and PJW were involved in years of litigation as to the reasons for and impact of project delays. PJW denied to Custopharm its pro rata share of the profits the project earned. At trial, PJW sought to recover damages of approximately $294 million from Custopharm. In his 48-page decision, Judge Lee rejected PJW’s critical theories about the contract and associated damages. Custopharm achieved complete reinstatement of its ownership rights, an accounting of all the benefits paid to the other members of the Company and reinstatement of its capital account.