InVivo Therapeutics sues ex-CEO Reynolds
March 18, 2014 by Brad Perriello
InVivo Therapeutics said it’s suing former CEO Frank Reynolds, who stepped down last year citing health reasons, alleging that he ran up $500,000 worth of "personal and/or exorbitant expenses."
Cambridge, Mass.-based InVivo said the lawsuit, filed in November 2013 in a Massachusetts state court, accuses Reynolds of "breaches of fiduciary duties, breach of contract, conversion, misappropriation of corporate assets, unjust enrichment, corporate waste." Read more
Proxy war brews as activist investor Oracle targets Biolase board
March 17, 2014 by Arezu Sarvestani
Biolase came under fire by its largest shareholder, the activist investment firm Oracle Partners, which accused Biolase chairman & CEO Federico Pignatelli of manipulating the company’s board of directors.
Oracle, which owns 16.4% of Biolase’s shares, filed a lawsuit seeking court-mandated changes to the board as well as a temporary restraining order requiring that board members seek approval before taking any actions. Oracle responded that it will respond to Oracle in court and that it plans to address recommended board changes "in due course." Read more
Volcano appeals loss to St. Jude Medical in FFR war
March 19, 2014 by Brad Perriello
Volcano appealed the loss of a patent infringement lawsuit it brought against St. Jude Medical over a pair of fractional flow reserve patents, after a federal judge in Delaware tossed the case this week.
Earlier this month Volcano agreed to stipulate that St. Jude is not infringing the patent, based on a claim construction by Judge Richard Andrews of the U.S. District Court for Delaware, but vowed to appeal the claim construction. Read more
Ophthalmologist pays $1.4M, agrees to 20-year Medicare ban
March 17, 2014 by Brad Perriello
A Baltimore ophthalmologist agreed to a 20-year ban from federal healthcare programs and a $1.4 million penalty to settle charges that he bilked Medicare and Medicaid for unnecessary laser eye surgeries.
Federal prosecutors accused Dr. John Kiely, who denied the allegations, of performing unneeded trabeculoplasties and peripheral iridotomies to treat glaucoma and adhesion lysis procedures between October 2002 and April 2009. Most of the procedures were performed at Bon Secours Hospital in Baltimore, according to a press release. Read more
Alphatec settles OrthoTec beef for $49M
March 18, 2014 by Brad Perriello
Alphatec said it agreed to pay $49 million over 7 years to settle a legal dispute with OrthoTec and beat Wall Street’s forecast for its 4th-quarter earnings.
Last month a California state jury found that 1 of Alphatec’s subsidiaries undervalued assets during an acquisition in Europe, leveling a $48 million judgment against the Carlsbad, Calif.-based medical device company. Read more