Biomet Announces Litigation Against Zimmer and Others.WARSAW, Ind. -- Biomet Orthopedics, Inc. and Biomet, Inc. (collectively "Biomet") (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :BMET BMET Biomedical Engineering Technology BMet Bachelor of Metallurgy BMET Bio-Medical Equipment Repair Technician ) recently initiated legal proceedings All actions that are authorized or sanctioned by law and instituted in a court or a tribunal for the acquisition of rights or the enforcement of remedies. against Zimmer US, Inc. ("Zimmer"), former Biomet distributors, and David Montgomery David Montgomery (1927) is Farnam Professor of History Emeritus at Yale University. Montgomery is considered one of the foremost academics specializing in United States labor history and has written extensively on the subject. , a former Biomet executive who resigned from Biomet in January 2007 and currently works for Zimmer. The thirteen count lawsuit filed in Marion County, Indiana Marion County is a county located in the U.S. state of Indiana. As of 2000, the population was 860,454. The estimated population in 2006 was 865,504. The county seat is Indianapolis6. Geography According to the U.S. alleges, among other things, that Zimmer and Montgomery attempted to create an unfair market advantage by engaging in a campaign to misappropriate mis·ap·pro·pri·ate tr.v. mis·ap·pro·pri·at·ed, mis·ap·pro·pri·at·ing, mis·ap·pro·pri·ates 1. a. To appropriate wrongly: misappropriating the theories of social science. Biomet confidential information Noun 1. confidential information - an indication of potential opportunity; "he got a tip on the stock market"; "a good lead for a job" steer, tip, wind, hint, lead , interfering with Biomet's contractual relations with distributors and attempting to buy the assets of most of Biomet distributors (including Biomet surgical instruments) throughout the country. The lawsuit further alleges that the limited number of distributors who accepted Zimmer's offer are in violation of their contractual obligations to Biomet. Although nearly all of Biomet's distributors rejected Zimmer's offers and have remained with Biomet, and although no amount of money damages can completely compensate Biomet for the losses it has sustained as a result of this conduct, Biomet is nonetheless seeking to recover compensatory damages A sum of money awarded in a civil action by a court to indemnify a person for the particular loss, detriment, or injury suffered as a result of the unlawful conduct of another. that are attributable to financial and other resources spent on signing new agreements with its sales force. To the extent Biomet sustained damages as a result of its former distributors agreeing to "sell" their assets to Zimmer, Biomet is seeking to recover lost profits and other damages as well. In addition, Biomet is seeking to recover punitive damages Monetary compensation awarded to an injured party that goes beyond that which is necessary to compensate the individual for losses and that is intended to punish the wrongdoer. from the defendants. According to Jeff Binder, Biomet's President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , "It appears that Zimmer is engaged in a scheme to increase market share by attempting to indirectly buy our business relationships by 'acquiring' our distributors. Although this scheme has been generally unsuccessful, it has nonetheless damaged Biomet. As part of its scheme, Zimmer has offered to enter into asset purchase agreements with most of Biomet's distributors. Demonstrating the strength of Biomet's products and relationships, only three Biomet distributors have accepted Zimmer's offers." "In Biomet's view, Zimmer's offers are thinly veiled attempts to induce our distributors to violate their agreements with us and induce sales representatives to convert our customers to Zimmer. In furtherance of its attempts to disrupt our business, Zimmer has even purchased Biomet surgical instruments. Given that Zimmer has absolutely no use for these instruments, we believe the acquisition of the instruments was an attempt to disrupt service to our customers." "To this point we have: (1) retained a significant majority of our representatives and customers in the affected territories; (2) signed a very high percentage of our distributors across the United States to new agreements; and (3) purchased our instruments back from Zimmer as their company yielded to pressure - all at great cost to our company. Biomet will continue to compete, as we always have, by focusing in areas that are of real value to our customers and their patients - the quality and clinical results of our products, true technological advances, extraordinary service and enduring relationships." About Biomet Biomet, Inc. and its subsidiaries design, manufacture and market products used primarily by musculoskeletal musculoskeletal /mus·cu·lo·skel·e·tal/ (-skel´e-t'l) pertaining to or comprising the skeleton and muscles. mus·cu·lo·skel·e·tal adj. Relating to or involving the muscles and the skeleton. medical specialists in both surgical and non-surgical therapy. Biomet's product portfolio encompasses reconstructive products, including orthopedic joint replacement devices, bone cements and accessories, autologous autologous /au·tol·o·gous/ (aw-tol´ah-gus) related to self; belonging to the same organism. au·tol·o·gous adj. 1. therapies and dental reconstructive implants; fixation products, including electrical bone growth stimulators, internal and external orthopedic fixation devices, craniomaxillofacial implants and bone substitute materials; spinal products, including spinal stimulation devices, spinal hardware and orthobiologics; and other products, such as 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. products and softgoods and bracing products. Headquartered in Warsaw, Indiana, Biomet and its subsidiaries currently distribute products in more than 100 countries. Forward-Looking Statements This press release contains certain statements that are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements are qualified by the inherent risks and uncertainties surrounding future expectations generally, and also may materially differ from actual future experience involving any one or more of such statements. Such risks and uncertainties include our ability to develop and market new products and technologies in a timely manner, the effect of the pending merger on Biomet's business and its relationship with customers, distributors, employees and suppliers and the risk factors as set forth from time to time in Biomet's filings with the SEC. The inclusion of a forward-looking statement herein should not be regarded as a representation by Biomet that Biomet's objectives will be achieved. Biomet undertakes no obligation to publicly update forward-looking statements, whether as a result of new information, future events or otherwise. |
|
||||||||||||||

Printer friendly
Cite/link
Email
Feedback
Reader Opinion