Gilstrap Slams Iris Connex with Attorney Fees and Sanctions in Dell Case

January 27, 2017

District Judge Rodney Gilstrap has imposed $355K in attorney fees and costs on Iris Connex, LLC, ruling that the Texas-based NPE had pursued such an objectively meritless case against defendant Dell (2:15-cv-01915) that the lawsuit was exceptional under Octane. In a 57-page opinion issued on January 25, Judge Gilstrap also ordered attorney Brian Yates to pay Dell $152K in sanctions, ruling that he had abused the corporate form by controlling the Iris Connex campaign through shell company Q Patents, Inc., failed to disclose that entity as the NPE’s parent, and then acted in bad faith in his further attempts at concealing that relationship. Finally, Judge Gilstrap imposed sanctions on Craig Tadlock, Iris Connex’s counsel, requiring him to pay $25K to the court for advancing a wholly implausible claim construction argument.

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