Stryker Lodges Suit Against Former Employees, Biomet for 'Conspiracy'
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Staff Report-
Kalamazoo, Mich.-based medical equipment firm Stryker is accusing Biomet and two former employees of a scheme to poach business and sales representatives. Former Stryker employees Christopher Ridgeway and Richard Steitzer allegedly conspired with Biomet in the scheme, according to the lawsuit filed Monday in the U.S. District Court for Western Michigan. Steitzer quit in June to work for Biomet and Stryker fired Ridgeway Sept. 10 after allegedly finding that he was running his own medical supply businesses on the side, industry news sources report. Stryker’s filing allegeds “an ill-conceived and long-planned scheme” by Biomet, using Steitzer in New York and Ridgeway in Louisiana, to “erode customer relationships” and “raid sales teams” from Stryker’s Neuro Spine ENT business unit and craniomaxillofacial division. “Complete with secret code words, Biomet’s scheme involved Ridgeway and Steitzer as proxies, while still Stryker employees, to intentionally damage Stryker and sabotage its ability to compete in a highly competitive marketplace,” massdevice.com quotes the court filing as saying. Ridgeway is also accused in the lawsuit of failing to make enough hires to keep his territory competitive while also hiring for and diverting opportunities to his own side business. Stryker claims losses exceeding $3 million from his alleged actions. Biomet began courting Ridgeway in June, Stryker allegeds, looking to bring his entire sales teams on board. Stryker is also accusing Steitzer of lying about his role at Biomet, alleging that he accepted severance payments connected to his agreement not to work for a competing business at Biomet. Steitzer misappropriated trade secrets and disclosed them to Biomet, Stryker allegeds, and further breached non-competition and non-solicitation agreements by soliciting and moving Stryker business to Biomet. Stryker wants Judge Robert Bell to grant injunctions and a restraining order preventing Ridgeway, Steitzer and Biomet from disclosing trade secrets, diverting customers and selling to customers they’ve already allegedly diverted, massdevice.com says. Stryker also wants punitive damages and disgorgement of any profits made from the alleged scheme, plus legal costs. Bell denied the bid for a temporary restraining order Tuesday, scheduled a hearing for Oct. 30, and ordered defendants to show cause why the injunctions should not be imposed, according to court documents. Bill Kolter, Biomet corporate vice-president, for marketing and public affairs, declined to comment on pending litigation when contacted by the Times-Union.
