Gumipod Accuses Altria of Misusing Confidential Technology for “On!” Nicotine Pouches

Key Points: 

Plaintiff: UK-based Gumipod Group, Ltd.

Defendants: Altria Group, Inc. and three subsidiaries — Altria Client Services LLC, Helix Innovations LLC (believed to be the owner of the “On!” brand), and Altria Group Distribution Company.

Dispute Origin: After the signing of a confidentiality agreement in 2018, Gumipod provided samples and specifications; Altria announced the collaboration was on hold, but in 2019 launched “On!” nicotine pouches.

Core Allegations: Violations of the Defend Trade Secrets Act (DTSA), violations of the Virginia Uniform Trade Secrets Act (VUTSA), breach of contract, unjust enrichment, and business conspiracy.

Claims: Cease infringement, compensate for losses and punitive damages, pay legal fees, and obtain a permanent injunction.

On August 22, 2025, according to documents released by the Eastern District Federal Court of Texas in the United States, Gumipod Group, Ltd., based in London, filed a federal lawsuit against tobacco company Altria Group (Altria Group, Inc.) and several of its subsidiaries. The lawsuit accuses Altria of misappropriating its trade secrets for use in the packaging of its popular “On!” brand nicotine pouch products.

The defendants named in the complaint include Altria Group itself, along with its three subsidiaries: Altria Client Services LLC, Helix Innovations LLC (alleged to own the “On!” brand), and Altria Group Distribution Company.

According to the filing, Gumipod was founded by Duval Middleton in 2011 and developed an innovative “plastic capsule-style gum container” with a built-in recycling bin, allowing consumers to conveniently dispose of chewed gum.

In August 2018, Emily Ornelas, then a procurement analyst for Altria, contacted Middleton through Gumipod’s website. Shortly afterward, Kwazna Downs, then Altria’s purchasing manager, reached out via Facebook, clarifying that Altria’s interest was in applying the technology to “nicotine products derived from oral tobacco,” rather than gum.

To advance discussions, the parties signed a Mutual Confidentiality Agreement (MCA). A key clause stipulated that the obligation to protect trade secrets would remain in effect “as long as trade secret protection is still available.” Following this, Gumipod provided Altria with 10 product samples and detailed production specifications. However, in October 2018, Altria abruptly notified Gumipod that the project was “on hold.”

Less than a year later, in June 2019, Altria publicly acquired and relaunched the “On!” nicotine pouch brand. Gumipod alleges that it did not discover the misappropriation until August 24, 2022, when former Gumipod employee Julian Hogan forwarded Altria’s internal marketing documents related to “On!” to Middleton. Gumipod claims that these documents demonstrated the use of its proprietary packaging technology in the design and marketing of On! products.

From a legal perspective, Gumipod has filed five causes of action: violation of the Defend Trade Secrets Act (DTSA), violation of the Virginia Uniform Trade Secrets Act (VUTSA), breach of contract, unjust enrichment, and violation of the Virginia Business Conspiracy Act.

The plaintiff is requesting a jury trial and is seeking court orders requiring Altria and its subsidiaries to:

Immediately cease the use and sale of products alleged to infringe Gumipod’s intellectual property;

Compensate Gumipod for actual losses and punitive damages (amount to be determined at trial);

Pay legal fees and court costs;

Grant a permanent injunction prohibiting further use of Gumipod’s trade secrets and technology.