Mass. Court Rejects Cost-Savings Disgorgement Claims Under Chapter 93A
Massachusetts federal court rules disgorgement of internal cost savings unavailable under Chapter 93A.
Why it matters: This ruling limits remedies in consumer protection cases, requiring plaintiffs to link alleged gains directly to their lost profits. It may reshape litigation strategies under Chapter 93A nationwide.
- On July 22, 2026, a federal court ruled disgorgement of internal cost savings is not a remedy under Chapter 93A without direct profit linkage.
- Crosby Legacy Company alleged TechnipFMC used its proprietary materials without permission, saving about $40 million in training costs.
- TechnipFMC successfully blocked the expert disgorgement testimony, arguing Massachusetts law disallows such recovery.
- The court emphasized disgorgement is disfavored if lost profits can be measured and requires a direct connection to plaintiff's anticipated benefits.
On July 22, 2026, the U.S. District Court for the District of Massachusetts dismissed a disgorgement theory of damages based on alleged internal cost savings under Massachusetts General Laws Chapter 93A.
The plaintiff, Crosby Legacy Company, LLC, operating as Philip Crosby Associates, claimed that TechnipFMC plc improperly used its proprietary materials to develop an internal training program, resulting in about $40 million in company-wide efficiency savings. Crosby sought to recover these savings as damages through disgorgement supported by expert testimony.
TechnipFMC moved to exclude this expert testimony, arguing that Massachusetts law does not permit recovery of internal cost savings under Chapter 93A. The court agreed, holding that disgorgement is not categorically barred but is disfavored where lost profits can be calculated.
The decision distinguished between defendants who realize identifiable profits directly traceable to wrongful conduct and those who achieve internal cost savings not clearly linked to profits owed or anticipated by the plaintiff. It reaffirmed that Chapter 93A claimants cannot recover damages disconnected from the plaintiff's lost profits or benefits absent the misconduct.
This ruling highlights the necessity for plaintiffs to demonstrate a direct, quantifiable connection between the defendant's gains and their own losses. It also restricts the use of disgorgement as a remedy for cost-recovery claims that are based solely on cost savings rather than profits.
Legal professionals litigating consumer protection and unfair trade practice claims under Chapter 93A should carefully assess the availability of disgorgement remedies in light of this precedent.
By the numbers:
- $40 million — Alleged efficiency savings TechnipFMC gained using proprietary materials.
- July 22, 2026 — Date of Massachusetts federal court ruling on disgorgement under Chapter 93A.