DePuy Synthes claims that Orthofix persuaded some of its key employees to break their contracts, damaging its ability to conduct business in Texas and Alabama.
Denise Landry, Vice President of Corporate Communications for Orthofix, told OTW, “Orthofix is reviewing the matter and intends to vigorously defend itself against DePuy Synthes’ claims.”
DePuy filed a suit against Orthofix, claiming that the company improperly converted longtime DePuy customer Southeast Alabama Medical Center into an Orthofix client. According to DePuy’s suit, Orthofix accomplished this by hiring two former DePuy sales consultants, Thomas Wells and Michael Sewell, and obtaining confidential information from them.
Confidential sales information can include sales data, performance rankings, details of special pricing arrangements and discounts, research and development plans, and product rollout information. DePuy sales reps are required to sign non-compete agreements. Wells had a 12-month non-compete and Sewell had an 18-month non-compete. Wells and Sewell worked together and were responsible for the Southeast Alabama Medical Center account.
On March 24, 2017, Wells and Sewell resigned within hours of one another. Wells and Sewell had their last day at DePuy on April 7, 2017. Since that date, alleges DePuy, all DePuy Synthes equipment that was scheduled to be used in surgeries was cancelled and DePuy has not done any further business at Southeast Alabama Medical Center.
DePuy alleges in its court filings that “Orthofix was able to convert an account worth millions of dollars practically overnight by using the investments DePuy Synthes made its customers relationships, goodwill, specialized training, and confidential information through Messrs. Wells and Sewell, inducing them to leverage these investments to Orthofix’s benefit.”
DePuy alleges that Orthofix engaged in similar behavior in Texas, by targeting two DePuy Synthes sales consultants, Scott Mackey and Miranda Middleton.
DePuy Synthes is seeking compensatory, incidental and consequential damages, as well as compensation for legal costs and interest. DePuy also wants Orthofix to forfeit all gains or profits that resulted from interactions with the four former DePuy employees.
Again, Orthofix is reviewing everything and will vigorously defend itself.
