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Regeneration Technologies sues MTF alleging false advertising, deceptive business practices; MTF denies allegation.

Regeneration Technologies, Inc. (RTI), Alachua, FL, has filed a lawsuit on June 14 against the Musculoskeletal Transplant Foundation (MTF), Edison, NJ, alleging "MTF has engaged in an intentional, targeted campaign of falsehoods and innuendo designed to undermine RTI and RTI's tissue." The lawsuit, which was filed in the US District Court for the Northern District of Florida in Gainesville, also states "MTF's behavior is not only unlawful, but violates MTF's mission as a non- profit entity. The result has been harm to RTI and the entire tissue industry."

MTF President Bruce Stroever denied the allegations and said MTF will "vigorously defend" against all RTI's charges.

In its press release RTI specifically alleges in its complaint that:

*A series of print advertisements placed by MTF contain false and misleading statements, including a false and unsupported implication that RTI's products are unsafe.

*MTF representatives have made false and misleading statements about RTI and its tissues to hospitals and physicians who are current or potential customers of RTI.

*MTF "misrepresents its status as a non-profit company to gain a competitive advantage over RTI" and "misuses its tax exempt status by operating for-profit entities that are structured to inure benefits to principals of MTF."

Stroever responded that the object of the MTF marketing campaign was to address the practice of donor pooling, a practice that is practices by RTI. He pointed out that the US Food and Drug Administration (FDA) is currently reviewing RTI's donor pooling practice.

"We think it is necessary and appropriate that we tell surgeons who use human tissue for health-saving transplant surgery understand exactly what they are getting," Stroever said. "We believe it is imperative that we tell surgeons about the real differences between tissue banks, allowing them to make educated choices for their patients."

RTI President Jamie Grooms expressed confidence his company's products will meet the test of the marketplace. "But we won't stand by and let a non- profit competitor deliberately manipulate that marketplace through a campaign of inaccuracies and innuendo," he added. "We want this misinformation about our products to be evaluated in a court of law--because we are absolutely confidence it won't stand up."

Contact: Nancy Walsh, RTI - (386) 418-8888, or Bruce Stroever - (732) 661-2220
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Comment:Regeneration Technologies sues MTF alleging false advertising, deceptive business practices; MTF denies allegation.
Publication:Transplant News
Article Type:Brief Article
Geographic Code:1USA
Date:Jun 30, 2001
Previous Article:ABC News cited by AOPO for journalism excellence.
Next Article:LifeNet, LifeLink form new alliance for processing, distribution of allograft tissue for transplantation.

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