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Intellectual Property

Jul. 15, 2026

9th Circuit orders new trial in $40M Comet trade secrets case

A divided 9th Circuit panel ordered a new trial in Comet Technologies USA Inc.'s trade secrets lawsuit against XP Power LLC, ruling that erroneous jury instructions on the Defend Trade Secrets Act required reversal of a $40 million verdict and a related $17 million attorney fee award.

Citing faulty jury instructions, a divided 9th U.S. Circuit Court of Appeals panel on Tuesday reversed a $40 million trade secrets misappropriation verdict in favor of Comet Technologies USA Inc. and granted a new trial in the company's dispute with XP Power LLC.

The decision also wiped out $17 million in attorney fees for lawyers representing Comet Technologies.

Senior 7th U.S. Circuit Court of Appeals Judge David F. Hamilton -- sitting on the 9th Circuit panel by d...

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