Arthrex Sues ArthroCare, Delaware Chancery Court Rejects Arguments to Dismiss and Orders Expedited Hearing.Business Editors NAPLES, Fla.--(BUSINESS WIRE)--Aug. 7, 2000 On July 25, 2000 Arthrex, Inc. commenced litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. against ArthroCare Corporation seeking an injunction preventing ArthroCare from wrongfully terminating the exclusive distributorship agreement between Arthrex and ArthroCare. Under this agreement, Arthrex is the exclusive distributor of ArthroCare's arthroscopic surgical devices in Europe, South Africa South Africa, Afrikaans Suid-Afrika, officially Republic of South Africa, republic (2005 est. pop. 44,344,000), 471,442 sq mi (1,221,037 sq km), S Africa. , the countries of the former Warsaw Pact Warsaw Pact or Warsaw Treaty Organization Military alliance of the Soviet Union, Albania (until 1968), Bulgaria, Czechoslovakia, East Germany, Hungary, Poland, and Romania, formed in 1955 in response to West Germany's entry into NATO. , the countries of South and Central America Central America, narrow, southernmost region (c.202,200 sq mi/523,698 sq km) of North America, linked to South America at Colombia. It separates the Caribbean from the Pacific. , and certain countries of the Caribbean. On August 3, 2000, the Delaware court rejected arguments made by ArthroCare to dismiss the lawsuit and ordered an expedited hearing on Arthrex's claims. The lawsuit alleges that ArthroCare breached the distribution agreement by attempting to terminate Arthrex as a distributor and by soliciting Arthrex's sales force and network of worldwide distributors. According to Reinhold Schmieding, Arthrex's president and founder, "Arthrex is very pleased with the Court's decision. Arthrex is deeply committed to its sales network and to its customers and Arthrex will demonstrate conclusively that ArthroCare is not justified in attempting to end the distribution arrangement in clear contravention A term of French law meaning an act violative of a law, a treaty, or an agreement made between parties; a breach of law punishable by a fine of fifteen francs or less and by an imprisonment of three days or less. In the U.S. of our contract and the expectations of our distribution network and customers." Mr. Schmieding explained that the lawsuit was designed to place an immediate halt to ArthroCare's efforts to end the distribution relationship, and that ultimately a proceeding to determine damages will be held. "This action is designed to cause ArthroCare to cease and desist Cease and desist (also called C & D) is a legal term used primarily in the United States which essentially means "to halt" or "to end" an action ("cease") and to refrain from doing it again in the future ("desist"). from its current wrongful course. Ultimately, we intend to pursue a claim for money damages to compensate Arthrex for the significant harm ArthroCare's wrongful termination wrongful termination n. a right of an employee to sue his/her employer for damages (loss of wage and "fringe" benefits, and, if against "public policy," for punitive damages). has already caused." Mr. Schmieding also said that, despite ArthroCare's actions, Arthrex will continue to provide top quality products and service to its current customers and to maintain its strong relationships with its sales and distribution network. "Arthrex has helped ArthroCare establish a foothold in the international market and Arthrex has surpassed sales targets each year. ArthroCare's attempt at wrongful termination and breach of non-solicitation clauses of our international distribution agreement will be vigorously challenged. Arthrex will take every step necessary to maintain its level of professional service and commitment to its surgeons and customers with a complete product portfolio to enhance its leadership position in the global sports medicine sports medicine, branch of medicine concerned with physical fitness and with the treatment and prevention of injuries and other disorders related to sports. Knee, leg, back, and shoulder injuries; stiffness and pain in joints; tendinitis; "tennis elbow"; and market." Arthrex is a private medical technology company that is recognized as a leader in U.S. sports medicine procedure-specific arthroscopy Arthroscopy Definition Arthroscopy is the examination of a joint, specifically, the inside structures. The procedure is performed by inserting a specifically designed illuminated device into the joint through a small incision. devices. Arthrex has developed more than 1,500 new devices since its inception. Arthrex's leadership is evidenced by its 1998 Knowledge Enterprises award for "Excellence in Arthroscopy and Soft Tissue Repair and the Orthopaedic Innovation Award for Hand Instruments" as determined by a national survey of orthopedic surgeons. |
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