March 30, 2017

Court Denies Motion to Dismiss EEA Counts

On June 10, 2013, the court denied defendants motion to dismiss a number of the charges in the only case that the government has brought against an entity under the control of a foreign government under section 1831 of the Economic Espionage Act. (Click here for a copy of the order). On March 12, 2013, the Grand Jury returned a twenty-two count Second Superseding Indictment (“SSI”) alleging that the Pangang Group, a Chinese company with Chinese government ties was behind the attempted theft of trade secrets from DuPont relating to the obscure, but valuable technology to produce titanium dioxide, a white pigment used in paints and other products. DuPont had allegedly been successful in keeping the information secret for over 50 years by, in part, allowing most employees to know about only individual parts of the process. According to the SSI, Walter Liew, a Malaysian born naturalized U.S. citizen, over the course of 15 years hired several employees from DuPont knowledgeable about specific pieces of the titanium process. Liew’s company allegedly received more than $12 million from a subsidiary of Panang between 2009 and 2011.

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