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A former VSL Pharmaceuticals Inc. executive was sanctioned for destroying documents that he retrieved from the company’s law firm before resigning, in a ruling by a federal magistrate judge Mar. 16. VSL and its former CEO Claudio De Simone have filed various claims against each other in a dispute over the ownership and use of intellectual property related to a probiotic medical food. De Simone, who patented the formulation, stepped down as VSL’s CEO in 2014. De Simone must pay VSL’s costs and attorneys’ fees associated with investigating the spoliation of documents and in preparing its related motion for sanctions, Magistrate Judge Timothy J. Sullivan, of the U.S. District Court for the District of Maryland said. The circumstances of this case are “a cause for serious concern,” he said. De Simone retrieved documents from VSL’s long-time law firm, Hyman Phelps & McNamara PC, at time when he was planning his departure from the company. He instructed the firm to destroy its copies of those documents and later destroyed some of the documents sent to him.
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