Sherman and Howard Client Ortho Agency Awarded Landmark Jury Verdict in Corporate‑Raiding Case

Medical-Device Distributor Wins Against Exactech and Former Sales Director for Takeover of Business Relationships, Misusing Trade Secrets and Poaching Contracted Sales Representatives

Sherman and Howard announced a recent jury verdict in favor of its clients Michael Shatzer and The Ortho Agency LLC against its former sales director, Chad Giarratano, and global medical device manufacturer Exactech U.S., Inc., for allegedly collaborating to take over existing and prospective business relationships, violating contractual agreements with Ortho Agency, misusing Ortho Agency’s trade secrets, and poaching contracted sales representatives. Mr. Shatzer and Ortho Agency were represented by trial lawyers Peter G. Koclanes and Nick M. DeWeese.

Sherman and Howard  said after a five-day trial in Denver District Court, a jury found in favor of Mr. Shatzer and Ortho Agency on all of their claims, including that Exactech had breached an exclusive Sales Agency Agreement to sell its products to hospitals, surgeons and surgery centers in three states and portions of two others. The jury further found that Mr. Giarratano and his business entities had breached their Independent Services Agreement based upon the Defendants conducting a months-long stealth campaign to eliminate Mr. Shatzer and Ortho Agency as the exclusive distributor for Exactech in those territories and to take over their business. The jury awarded Mr. Shatzer and Ortho Agency $4,000,001.

“This jury verdict is a landmark decision in the medical-device industry where corporate raiding of smaller distributors’ business and personnel by large manufacturers occurs all too often,” said Peter G. Koclanes. “Given the dollar amount ordered by the jury, its verdict is one of the largest monetary awards for damages for a case of this kind in Colorado in the last several years.”

In addition to alleging that Exactech breached its Sales Agency Agreement, Ortho Agency alleged that Mr. Giarratano breached his contractor agreement with the company in a variety of ways, including violating non-disclosure of confidential and trade secret information, non‑competition, and non-solicitation provisions, including when he went to work for Exactech as a new distributor, and solicited and recruited Ortho Agency’s sales personnel to work for his distributorship and Exactech.

“This is a defining verdict in the medical-device industry and sends a clear message that manufacturers in this field should not engage in conduct that interferes with their distributors’ sales and customer relationships, or with the distributors’ relationships with their sales representatives,” said Nick M. DeWeese.

Medical Device News Magazine
Our publication is dedicated to bringing our readers the latest medical device news. We are proud to boast that our subscribers include medical specialists, device industry executives, investors, and other allied health professionals, as well as patients who are interested in researching various medical devices. We hope you find value in our easy-to-read publication and its overall purpose and objectives! Medical Device News Magazine is a division of PTM Healthcare Marketing, Inc. Pauline T. Mayer is the managing editor.

More News!

Data from clinical studies of STK-001 demonstrated clinical benefit for patients ages 2 to 18 years old, including reductions in seizures and improvements in cognition and behavior that support the potential for disease modificatio. Analysis of 72 patients treated in STK-001 clinical trials suggests that higher STK-001 drug exposure in brain leads to greater seizure reductions. Two-year data from the longest prospective natural history study of Dravet syndrome showed that, on average, patients experienced no meaningful improvement in convulsive seizure frequency and exhibited widening gaps in cognition and behavior despite treatment with the best available anti-seizure medicines.
"Exact Sciences is looking forward to presenting new evidence at SABCS that adds important perspectives to treating breast cancer patients and showing that some patients may be able to de-escalate treatments and still have positive outcomes," said Dr. Rick Baehner, Chief Medical Officer, Precision Oncology, Exact Sciences. "Every year, we build upon the precedent set by the Oncotype DX Breast Recurrence Score® test and its prognostic and predictive abilities to determine the chemotherapy benefit for specific breast cancer patients. We are pleased to see authorities expanding access to this test as we continue to develop key evidence in collaboration with some of the world's most prestigious, breast cancer-focused organizations."
Clozapine has been established as the most effective antipsychotic medication for treatment-resistant schizophrenia. However, it is significantly underutilized mainly due to the risk of developing agranulocytosis and the need to frequently monitor the absolute neutrophil count (ANC).
Dagi-Ben Noon, CEO of Inspira Technologies, reflects on the partnership's significance: "By Integrating our technology to oxygenate blood directly with Ennocure's infection prevention solutions, we are focusing on potentially improving patient outcomes in ICUs and paving the way for safer, more effective life-support treatments. This collaboration is expected to accelerate the development and broaden the implementation of our advanced technology."
The findings suggest that the novel, non-invasive genomic test can help physicians guide next steps for these patients, enabling them to potentially avoid unnecessary invasive procedures or accelerate time to appropriate treatment.

By using this website you agree to accept Medical Device News Magazine Privacy Policy