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A pharmaceutical company was being sued by two researchers for patent infringement. Allegedly, the patent rights belonged to two other pharmaceutical/research companies (one in South Korea and the other in California). The Pinkerton client suspected these lawsuits were filed as a form of extortion, and wanted to know the background information and business operations of the two companies in question.
To determine the facts of the case, Pinkerton’s team of due diligence experts:
The findings from Pinkerton’s agents indicated that the two companies filing the claim were actually shell or front companies – they did not actually have a true physical or business existence. It was learned that both illegitimate companies were linked to one person. As a result of Pinkerton’s thorough investigative work, the pharmaceutical client avoided a potentially lengthy and costly litigation.