The American Chemical Society has lost the latest round of a legal action against a group of former employees, leaving the society facing a $40 million bill.

The ACS last year lost a lawsuit against the chemical-information company Leadscope, of Columbus, Ohio. It had claimed former employees of the ACS used its intellectual property when founding Leadscope. The society posted a $36.5-million bond after it lost the lawsuit (see: Even big societies feel the pinch).

Now the Tenth District Court of Appeals of Ohio has upheld the earlier judgement and the ACS is considering whether to take the matter to the state’s Supreme Court.

“We’re very pleased for our clients, as this decision ends years of battling claims that cost our clients time and resources they would have spent investigating innovative ways to improve the drug development process,” said Alan Briggs, of Leadscope’s lawyers Squire Sanders (statement).

Squire Sanders says the ruling is for $34.4 million, including $7.5 million in punitive damages and another $7.9 million in fees and expenses.

A statement from the ACS says that, including attorneys fees and interest, the amount “approximates” $40 million. The society says, “Should satisfaction of the judgment become necessary, ACS does not anticipate that it will result in changes to staff, ongoing programs, or member dues.”

However, Chemical and Engineering News (which is owned by the ACS) says the ruling “could deal ACS a severe financial blow”.