Synthes, Biomet in Legal Tussle Over Customers

Talk about Clash of the Titans.

Synthes USA is suing a former sales representative and orthopedic manufacturing rival Biomet Inc., claiming the two conspired to steal customers from the Ohio area. A lawsuit filed in U.S. District Court for Eastern Pennsylvania accuses John Scott of Dublin, Ohio, of teaming with Biomet to recruit and convert Synthes customers while he was still working for the West Chester, Pa.-based implant and surgical instrument manufacturer. The collaboration, the lawsuit claims, violates the non-disclosure and non-compete agreements Scott signed when he joined Synthes in June 2006.

Scott gave Synthes executives two weeks’ notice on Valentine’s Day this year, telling his bosses that he was leaving the company to work for Warsaw, Ind.-based Biomet. Before he left, though, Scott attempted to convince the customers, surgeons and hospitals he had formed relationships with to follow him to Biomet, according to court documents.

“Scott and Biomet closely coordinated efforts to improperly convert Scott’s biggest Synthes customers to Biomet through a series of carefully orchestrated actions that began well before Scott left Synthes’ employ,” the lawsuit charges. “Less than two weeks after Scott provided notice of his resignation to Synthes, but before Scott’s last day with Synthes, notwithstanding Scott’s assurances that he would honor his contractual obligations, Synthes was advised that a large amount of business from Scott’s largest customer was immediately converting from Synthes products to Biomet products out of loyalty to John Scott. In fact, surgeries scheduled for after Scott’s departure were switched from Synthes to Biomet products on hospital surgery schedules even before Scott left Synthes.”

The lawsuit claims Scott moved “all or substantially all” of his Synthes business (and customers) to his new employer. Biomet representatives declined to comment on the lawsuit when contacted by Orthopedic Design & Technology.

“This conversion was a direct result of Scott’s move to Biomet and was always an integral part of Biomet’s and Scott’s coordinated plan when Scott’s employment with Biomet was being negotiated,” the lawsuit states. “In this industry, the relationship that a salesman develops with surgeons is a key driver of sales. To this day Scott actively maintains regular and frequent contact with his former Synthes customers in order to maintain close personal relationships that can help drive sales to Biomet now and into the future.”

Synthes’ lawsuit demands a jury trial, damages and legal fees.