Sam Brusco, Associate Editor02.02.22
In a lawsuit filed on Jan 28, Globus Medical alleged that Medtronic and four former Globus sales representatives in San Antonio, Texas schemed to “lift out” Globus’ sales team there and carrying out a long-planned conspiracy to illegally steal business from Globus.
In the complaint, Globus also accuses one of the defendants of engaging in other schemes while in the company’s employ to redirect business to other customers for the defendant’s benefit at the expense of Globus.
Like the majority of companies in competitive industries, Globus requires that all members of its sales force sign non-disclosure agreements (NDAs) at the time of hire and as a condition of employment. After Globus had terminated one of their managers’ employment, the company said he then joined Medtronic and brought on another sales manager to quit, and recruit some employees and customers to Medtronic. This violated their contracts.
“…instead of fairly building a team to compete in the San Antonio market, Medtronic decided it would be easier to steal a Globus team, and induce them to violate their NCNDAs by using Globus’s confidential information and trading on the goodwill Globus had developed in the San Antonio Territory for its own benefit, and to the detriment of Globus,” Globus claimed in the lawsuit.
Since the defendants resigned, Globus said five customers whose business with the company was over $2.5 million last year have stopped using products, not done surgeries with Globus, and ceased communications. The company expects the number of surgeons who leave Globus to increase due to the unlawful conduct.
Globus asked the court to enforce the contracts as well as order payment of other damages from the former employees and Medtronic. This includes “all earnings, profits and benefits received” by the defendants due to their accused wrongdoing.
Globus also seeks to recover over $1.3 million in payback provisions for one of the sales manager’s contracts.
In the complaint, Globus also accuses one of the defendants of engaging in other schemes while in the company’s employ to redirect business to other customers for the defendant’s benefit at the expense of Globus.
Like the majority of companies in competitive industries, Globus requires that all members of its sales force sign non-disclosure agreements (NDAs) at the time of hire and as a condition of employment. After Globus had terminated one of their managers’ employment, the company said he then joined Medtronic and brought on another sales manager to quit, and recruit some employees and customers to Medtronic. This violated their contracts.
“…instead of fairly building a team to compete in the San Antonio market, Medtronic decided it would be easier to steal a Globus team, and induce them to violate their NCNDAs by using Globus’s confidential information and trading on the goodwill Globus had developed in the San Antonio Territory for its own benefit, and to the detriment of Globus,” Globus claimed in the lawsuit.
Since the defendants resigned, Globus said five customers whose business with the company was over $2.5 million last year have stopped using products, not done surgeries with Globus, and ceased communications. The company expects the number of surgeons who leave Globus to increase due to the unlawful conduct.
Globus asked the court to enforce the contracts as well as order payment of other damages from the former employees and Medtronic. This includes “all earnings, profits and benefits received” by the defendants due to their accused wrongdoing.
Globus also seeks to recover over $1.3 million in payback provisions for one of the sales manager’s contracts.