NuVasive sues former COO Miles for jumping ship to Alphatec

UPDATED Oct. 11, 2017, with comment from Alphatec. NuVasive Inc. (NSDQ:NUVA) yesterday leveled a lawsuit against former CEO Patrick Miles, who jumped ship for Alphatec (NSDQ:ATEC) earlier this month, alleging that he enacted a year-long scheme to secretly back Alphatec while discouraging NuVasive from acquiring the smaller company. The lawsuit, filed in the Delaware Chancery Court, claimed that after NuVasive was approached in January 2016 about a possible acquisition of Alphatec, Miles advised NuVasive that the deal was “a waste of time” due to Alphatec’s “aged, undifferentiated portfolio.” But by March 2017, the suit alleged, Miles had secretly bought up a stake in Alphatec and negotiated a deal to become that company’s chairman. NuVasive also accused Miles of breaching his contract in taking the position with Alphatec, especially non-compete, non-solicitation and anti-poaching clauses. The company is seeking to compel Miles to return his compensation plus punitive damages. “This step was not taken lightly, particularly given Mr. Miles’ history with NuVasive. Yet it is this history and Mr. Miles’ intimate knowledge of the company and our proprietary information that makes his breach of fiduciary duties and contractual obligations so egregious and this litigation necessary,” NuVasive said in a prepared statement. “It is not the company’s preference to proceed down a litigation path, but it would be ...
Source: Mass Device - Category: Medical Devices Authors: Tags: Legal News Wall Street Beat Alphatec Nuvasive personnel-moves Source Type: news