On May 20, 2026, a Delaware jury returned a $23.3 million verdict in favor of C3.ai, finding Cummins liable for trade secret misappropriation. The case arose after C3.ai discovered that internal meeting notes had been shared by a Cummins employee, prompting litigation over the unauthorized handling of confidential business information. The size of the award has drawn considerable attention from in-house counsel, compliance officers, and executives who oversee sensitive corporate data.
For companies operating across competitive industries, this outcome is a powerful reminder that trade secret claims continue to carry substantial financial exposure. Courts have shown a sustained willingness to impose significant damages when confidential materials are mishandled, even where the underlying conduct involves a single employee or a discrete set of documents. The verdict reflects the seriousness with which juries treat the protection of proprietary information and the broader competitive harm that can result from its disclosure.
The case also highlights the importance of internal safeguards. Meeting notes, draft strategies, technical specifications, and similar materials often qualify as protectable trade secrets when reasonable measures are taken to maintain their confidentiality. Organizations that fail to clearly mark, restrict, or monitor such information may face challenges in both defending against misappropriation claims and pursuing them. Equally important, employees must understand the boundaries that govern materials shared in confidence by current or former employers.
From a risk management perspective, the verdict reinforces the value of robust trade secret programs. These typically include written confidentiality policies, controlled access to sensitive systems, onboarding and exit procedures that address proprietary information, vendor and partner agreements with appropriate protective terms, and regular training that helps employees recognize what may and may not be shared. When paired with disciplined documentation practices, these measures can reduce the likelihood of disputes and strengthen a company's position if litigation arises.
At Marshal & Benson, we continue to monitor developments in trade secret litigation and advise clients on practical strategies for protecting confidential information and responding to potential misappropriation. The Delaware verdict serves as a timely prompt to review internal controls and ensure that compliance programs reflect current legal expectations.
This article is provided for general informational purposes only and does not constitute legal advice. Clients and readers should consult qualified counsel for guidance tailored to their specific circumstances.