The history of this case is complex. City of Hope filed the original contract dispute suit against Genentech in 1999. The first trial resulted in a hung jury, 7-5 in Genentech’s favor, in October 2001. In the retrial, the jury deliberated for 17 days before announcing the verdict on June 10, 2002, which directed Genentech to pay approximately $300 million in additional royalties, including royalties on products for which Genentech itself did not receive royalties. The trial continued three days and the jury deliberated an additional three days before announcing the punitive damages award granted to City of Hope.
Of the decision on appeal, the three-member appellate court said there was "substantial evidence of fraud and malice" by Genentech. It also refused to grant the company a new trial. City of Hope had asserted Genentech concealed licensed sales of protein products, such as hepatitis vaccines, over a 15-year period that were worth about $16.7 billion and that it thereby was owed $457 million in royalties and interest.