Lionel wins reversal of trade secrets verdict

Lionel, a maker of model trains for more than 100 years, won reversal of a $40.8-million trade secrets verdict that had sent the company into bankruptcy.

A Detroit jury in June 2004 found that Chesterfield, Mich.-based Lionel had misappropriated designs from its rival, closely held model train maker Mike’s Train House Inc.

A federal appeals court in Cincinnati set aside the award and ordered a new trial, saying the trial judge had allowed improper expert testimony.