ChromaDex first filed a lawsuit against New York-based Elysium in late 2016 for alleged breach of contract and for not paying for an order of nicotinamide riboside (NR) and pterostilbene, which Elysium uses in its Basis dietary supplement. Over the years, ChromaDex filed additional claims relating to misappropriation of trade secrets, while Elysium counter sued, alleging that ChromaDex overcharged for the ingredients as well as disputing trademark and royalty agreements.
After a four-day trial, jurors agreed that Elysium had breached the supply agreement for the two ingredients and ordered the company to pay $2,983,350 in damages, plus estimated interest. Total damages from all of the parties’ claims and counterclaims together work out in ChromaDex’s favor, with the California-based company to receive approximately $2.25 to $2.50 million in damages and interest.
“It took nearly five years and has been challenging for both companies, but the jury’s decision finally holds Elysium accountable for paying what it owes,” said ChromaDex CEO Rob Fried. “We now look forward to focusing on the next phase of global growth for Tru Niagen with partners including Sinopharm Xingsha, Nestlé Health Science, Walmart, A.S. Watson Group, H&H Group, W.R. Grace, and Ro.”
The jurors also made decisions in Elysium’s favor, awarding the company a total of $1.9 million because of the disputed trademark and royalty agreements and for alleged violations by ChromaDex to a “most-favored-nation” pricing provision in the NR supply agreement between the two companies.