MiMedx escapes Osiris trade theft suit

MiMedx (NSDQ:MDXG) enjoyed a rare spot of good news when a federal judge in Maryland this week dismissed a trade theft and breach-of-contract lawsuit brought by Osiris Therapeutics over MiMedx’s  Stability Biologics acquisition. Columbia, Md.-based Osiris said it inked a distribution deal back in 2013 to have Stability sell a pair of its products through the end of 2015. But after MiMedx paid $10 million for Stability in January 2016, it allegedly gained access to Osiris trade secrets and fostered a series of events leading to $6.8 million in losses for Osiris. (In an about-face in August 2017, MiMedx agreed to sell Stability back to its original owners; that sale closed last October.) The lawsuit, filed in April in the U.S. District Court for Maryland, alleged that MiMedx held on to Osiris inventory worth $2.2 million, plus $1.3 million in pre-paid commissions, and directed Stability not to pay another $2.9 million allegedly owed under a payment plan; Osiris allegedly incurred another $321,000 in legal fees from its attempt to recoup its losses in arbitration. MiMedx filed a motion to dismiss for lack of jurisdiction. In a Dec. 11 ruling, Judge Catherine Blake ruled that Osiris failed to prove either general or specific jurisdiction in the case. “None of MiMedx’s alleged contacts with Maryland – which, even by Osiris’s characterization are limited to the acquisition of a subsidiary that owed debts to a Maryland corporation and the oper...
Source: Mass Device - Category: Medical Devices Authors: Tags: Legal News Regenerative Medicine MiMedx Group Inc. Osiris Therapeutics Inc. Source Type: news