Chinese Scientist Wins Covid-19 Release in Drug Secret Suit

Pretrial release is appropriate for a Chinese scientist accused of stealing trade secrets from pharmaceutical giant GlaxoSmithKline Plc, because he has an underlying respiratory condition that makes him susceptible to severe Covid-19 symptoms, the Third Circuit ruled Friday.

Gongda Xue appealed after a district court reversed a federal magistrate judge’s decision to release him. Xue’s wealth and resources made him a serious flight risk, Judge Joel H. Slomsky wrote for the U.S. District Court for the Eastern District of Pennsylvania.

The scientist allegedly received secret information on cancer research from his sister, who worked at GlaxoSmithKline and allegedly used the documents to launch her own company.

The sister, Yu Xue, previously pleaded guilty for her role in the matter.

Xue asked to be released after four inmates at the Philadelphia prison where he was being held tested positive for Covid-19. The prison’s acceptance of inmates from state and federal detention centers increased his risk of contracting the virus, Xue said.

Slomsky disagreed. Given the robust cleaning and quarantining measures taken at the prison, the movement of other prisoners wasn’t grounds for release, he said.

The U.S. Court of Appeals for the Third Circuit ordered Xue’s release based on his lack of criminal history, the nonviolent nature of his offense, and an underlying condition that made him susceptible to Covid-19.

Xue had complied with orders from a Swiss court while waiting for extradition and was likely to do so again, the judges said, rejecting Slomsky’s conclusion that Xue’s circumstances had changed drastically since that time, after spending more than five months in federal prison.

The terms of release previously set by the magistrate judge, including the use of a GPS monitor, would reasonably assure Xue’s appearance, Judges Thomas L. Ambro and L. Felipe Restrepo said. Judge Michael A. Chagares said he would deny the motion.

Coburn & Greenbaum PLLC and Rudolph Law Firm represent Xue. The U.S. Attorney’s Office represents the government.

The case is United States v. Xue, 3d Cir., No. 20-2039, 8/7/20.