Alphatec announces jury finds against Surgiview in OrthoTec litigation (Yahoo Finance)
Alphatec Holdings and OrthoTec, LLC Mutually Agree to Settle Ongoing Litigation (press release)
Alphatec Holdings, the parent company of Alphatec Spine, announced that a jury in the OrthoTec, LLC vs. Surgiview S.A.S. case pending before the Superior Court of California, Los Angeles County, reached a verdict. Surgiview, a subsidiary of Scient’x S.A.S., which was acquired by Alphatec in 2010, was found to have transferred assets for less than fair market value in connection with Surgiview’s purchase of certain assets of Eurosurgical S.A. in May 2006, and to have interfered with certain contractual rights of OrthoTec.
Although a formal judgment has not yet been entered, the jury has awarded monetary damages in the amount of $47.9M, plus interest against Surgiview related to various causes of action alleged by OrthoTec. Prior to a judgment being entered against Surgiview there will be a second trial to determine if Alphatec can be held responsible for the amount of the damages assessed against Surgiview. This second trial is scheduled to occur within the next 60 days. As a result, in Q4, Alphatec expects to record a non-recurring expense of $47.9M associated with yesterday’s damages award and trial-related litigation expenses of $3.7M that were incurred during Q4.