ORTHOTEC Obtains $73 Million Fraud Verdict Against Publicly Traded Company
ALPHATEC (ATEC) Subsidiary Surgiview
LOS ANGELES, Feb. 24, 2014 (GLOBE NEWSWIRE) -- Medical device manufacturer
OrthoTec, LLC has taken a major step forward in its legal battle against
public medical device company ALPHATEC (Nasdaq:ATEC). Following a month-long
trial, private company OrthoTec (Los Angeles) obtained a fraud verdict against
Surgiview, S.A.S., a subsidiary of public spine company ALPHATEC (ATEC).
ALPHATEC (ATEC) is one of the HealthpointCapital portfolio companies, a
private equity firm focused on the musculoskeletal sector of the medical
device industry. HealthpointCapital is headed by two veterans of private
equity investment, Mr. John Foster and Mr. Tim Berkowitz.
On February 11, 2014, following a month-long trial in Los Angeles, OrthoTec
obtained a fraud verdict against Surgiview. OrthoTec's theory of the case was
that Foster, Berkowitz, and HealthpointCapital had orchestrated a fraudulent
transfer of assets to Surgiview to prevent OrthoTec from collecting a debt.
Determining unanimously that the transfer of assets was a fraudulent
conveyance, the jury awarded OrthoTec damages of $48 million, plus
pre-judgment interest. OrthoTec estimates that, with interest and attorneys'
fees, the award will total about $73 million. OrthoTec CEO Patrick Bertranou
commented that "Surgiview and Alphatec (ATEC) refused all offers from OrthoTec
to reasonably settle this dispute choosing instead to spend millions in
litigation. I personally find this choice regrettable, but I am not in charge
of Alphatec's decision-making process; their board is." Bertranou added that
he is "a great believer in the jury system. The jurors really took our case to
heart, and for that we are grateful. I was also very blessed to have a great
lawyer in the person of Mr. Ross who has the ability to convey the essence of
a case to a jury in a clear and understandable manner." Bertranou asserted
that OrthoTec will now look to New York, where the same issues are slated to
be tried later this year against Foster, Berkowitz, and Healthpoint. OrthoTec
was represented at trial by Pete Ross and Ben Scheibe of the prominent
business litigation boutique Browne George Ross LLP, which has offices in Los
Angeles and San Francisco. The defendant losing party was represented by a
team of lawyers from Munger, Tolles & Olson, led by Mr. Brad Brian.
CONTACT: For more information please contact:
OrthoTec at email@example.com
Tel: (310) 273-1500 or,
Peter Ross, Esq.,
Browne George Ross, LLP
Tel: (310) 274-7100
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