Biomet Says Zimmer Stole Customers; Files Suit
July 28, 2016 at 4:25 p.m.
By Jen [email protected]
Biomet Inc. recently filed a lawsuit against Zimmer Inc., alleging that David Montgomery, former Biomet executive and current Zimmer employee, tried to create an unfair market advantage.
The suit claims that Montgomery attempted to misappropriate confidential information about Biomet and interfered with Biomet distributors throughout the United States.
Also, the suit claims that some distributors who accepted Zimmer's offer have violated their contractual obligations to Biomet.
"It appears that Zimmer is engaged in a scheme to increase market share by attempting to indirectly buy our business relationships by 'acquiring' our distributors," said Biomet President and CEO Jeff Binder in a press release. "Although this scheme has been generally unsuccessful, it has nonetheless damaged Biomet. As part of its scheme, Zimmer has offered to enter into asset purchase agreements with most of Biomet's distributors. Demonstrating the strength of Biomet's products and relationships, only three Biomet distributors have accepted Zimmer's offers."
Zimmer representatives are not commenting on allegations listed in the lawsuit.
"Generally, we do not comment on litigation," Brad Bishop, Zimmer's director of public affairs, said today. "We disagree with their assertions and will defend our position vigorously."
Biomet seeks to recover damages that are attributable to financial and other resources spent on signing new agreements with its sales force. The company reportedly lost profits because some former distributors agreed to sell their assets to Zimmer. Biomet also will seek damages from those distributors.
"In Biomet's view, Zimmer's offers are thinly veiled attempts to induce our distributors to violate their agreements with us and induce sales representatives to convert our customers to Zimmer," Binder said. "In furtherance of its attempts to disrupt our business, Zimmer has even purchased Biomet surgical instruments. Given that Zimmer has absolutely no use for these instruments, we believe the acquisition of the instruments was an attempt to disrupt service to our customers."[[In-content Ad]]
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Biomet Inc. recently filed a lawsuit against Zimmer Inc., alleging that David Montgomery, former Biomet executive and current Zimmer employee, tried to create an unfair market advantage.
The suit claims that Montgomery attempted to misappropriate confidential information about Biomet and interfered with Biomet distributors throughout the United States.
Also, the suit claims that some distributors who accepted Zimmer's offer have violated their contractual obligations to Biomet.
"It appears that Zimmer is engaged in a scheme to increase market share by attempting to indirectly buy our business relationships by 'acquiring' our distributors," said Biomet President and CEO Jeff Binder in a press release. "Although this scheme has been generally unsuccessful, it has nonetheless damaged Biomet. As part of its scheme, Zimmer has offered to enter into asset purchase agreements with most of Biomet's distributors. Demonstrating the strength of Biomet's products and relationships, only three Biomet distributors have accepted Zimmer's offers."
Zimmer representatives are not commenting on allegations listed in the lawsuit.
"Generally, we do not comment on litigation," Brad Bishop, Zimmer's director of public affairs, said today. "We disagree with their assertions and will defend our position vigorously."
Biomet seeks to recover damages that are attributable to financial and other resources spent on signing new agreements with its sales force. The company reportedly lost profits because some former distributors agreed to sell their assets to Zimmer. Biomet also will seek damages from those distributors.
"In Biomet's view, Zimmer's offers are thinly veiled attempts to induce our distributors to violate their agreements with us and induce sales representatives to convert our customers to Zimmer," Binder said. "In furtherance of its attempts to disrupt our business, Zimmer has even purchased Biomet surgical instruments. Given that Zimmer has absolutely no use for these instruments, we believe the acquisition of the instruments was an attempt to disrupt service to our customers."[[In-content Ad]]
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