Alphatec Spine Announces Jury Verdict in the OrthoTec Litigation
11 Februar 2014 - 3:00PM
Alphatec Holdings, Inc. (Nasdaq:ATEC), the parent company of
Alphatec Spine, Inc., a medical device company that provides
physician-inspired solutions for patients with spinal disorders,
announced today that a jury in the OrthoTec, LLC vs. Surgiview
S.A.S. case pending before the Superior Court of California, Los
Angeles County, reached a verdict. Surgiview, a subsidiary of
Scient'x S.A.S., which was acquired by Alphatec in 2010, was found
to have transferred assets for less than fair market value in
connection with Surgiview's purchase of certain assets of
Eurosurgical S.A. in May 2006, and to have interfered with certain
contractual rights of OrthoTec.
Although a formal judgment has not yet been entered, the jury
has awarded monetary damages in the amount of $47.9 million, plus
interest against Surgiview related to various causes of action
alleged by OrthoTec. Prior to a judgment being entered against
Surgiview there will be a second trial to determine if Alphatec can
be held responsible for the amount of the damages assessed against
Surgiview. This second trial is scheduled to occur
within the next 60 days. As a result, in the fourth quarter of
2013, Alphatec expects to record a non-recurring expense of $47.9
million associated with yesterday's damages award and trial-related
litigation expenses of $3.7 million that were incurred during the
fourth quarter of 2013. Additional information on this ongoing
litigation will be provided on the Company's upcoming fourth
quarter and full year 2013 earnings call.
"While Alphatec is disappointed with the outcome, we continue to
believe that the facts and the law do not support the jury's
findings and Alphatec will vigorously defend itself in any future
litigation related to this matter," said Les Cross, Chairman and
CEO of Alphatec Spine. Mr. Cross added, "Moving forward,
Surgiview will file appropriate legal motions."
This action against Surgiview was initiated in
2008. Following Alphatec's acquisition of Scient'x S.A.S. in
2010, Alphatec was added as a defendant in this case in
2012.
Further information regarding this litigation has been set forth
in the Company's filings with the U.S. Securities and Exchange
Commission (the "SEC") since December 2009. Such information
is available on both the SEC's website at www.sec.gov and the
Company's website at www.alphatecspine.com.
About Alphatec Spine
Alphatec Spine, Inc., a wholly owned subsidiary of Alphatec
Holdings, Inc., is a medical device company that designs, develops,
manufactures and markets physician-inspired products and solutions
for the treatment of spinal disorders associated with trauma,
congenital deformities, disease and degeneration. The Company's
mission is to combine innovative surgical solutions with
world-class customer service to improve outcomes and patient
quality of life. The Company and its affiliates market products in
the U.S. and in over 50 countries internationally via a direct
sales force and independent distributors.
Additional information can be found at
www.alphatecspine.com.
Forward Looking Statements
This press release may contain "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act
of 1995 that involve risks and uncertainty. Such statements are
based on management's current expectations and are subject to a
number of risks and uncertainties that could cause actual results
to differ materially from those described in the forward looking
statements. Alphatec Spine cautions investors that there can be no
assurance that actual results or business conditions will not
differ materially from those projected or suggested in such
forward-looking statements as a result of various factors. Forward
looking statements include references to any post-verdict
activities that may be undertaken by Alphatec, Surgiview or
OrthoTec. Please refer to the risks detailed from time to time in
Alphatec Spine's SEC reports, including its Annual Report Form 10-K
for the year ended December 31, 2012, filed on March 4, 2013 with
the Securities and Exchange Commission, as well as other filings on
Form 10-Q and periodic filings on Form 8-K. Alphatec Spine
disclaims any intention or obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events, or otherwise, unless required by law.
CONTACT: Investor/Media Contact:
Christine Zedelmayer
Investor Relations
Alphatec Spine, Inc.
(760) 494-6610
czedelmayer@alphatecspine.com
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