Globus Medical, Inc. is suing a former distributor, Louisiana-based Vortex Spine, LLC and its owner James Long, for “fraudulent and unfair competition.” The company claims Long acted as a “double agent” who sold Orthofix International, N.V. spine products to Globus customers in Louisiana. They also accuse one of Long’s employees of selling Biomet, Inc. spine products.
“Double Agent” and Defections Alleged by Globus in Louisiana
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Lawsuit Filed Against Vortex Spine
In a suit brought in Pennsylvania on June 2, 2014, Globus claims Long solicited Globus customers and employees on behalf of a competitor both while still a distributor of Globus and after terminating his relationship with Globus.
Vortex Spine entered into an exclusive distributor agreement with Globus in 2004. A more recent agreement extended the partnership until December 31, 2013. Efforts to reach terms regarding a new agreement were made in early 2014, but, according to the Globus lawsuit, Long rejected numerous offers by Globus. The company claims Long rejected the proposals because he had already begun to “implement his scheme to compete with Globus…” Because of the stalled negotiations, the distribution agreement expired on April 18, 2014.
“Double Agent” for Orthofix
According to the suit, Vortex sales representative Patrick O’Hara has been selling and distributing Biomet spine products to Justin Owen, M.D. and Samer Shamie, M.D., Globus customers in former Vortex’s territory. Another Vortex rep, David Cliburn, had allegedly been selling Biomet products for three weeks before the filing of the lawsuit to Jorge Isaza, M.D., one of Globus’ largest customers in the territory.
Globus also claims that Long is the principal owner of “M.I. Spine, LLC” a Louisiana company formed in 2008 and sold Orthofix products to Globus customers. Calling Long a “double agent, ” Globus claims Long used the LLC to conceal his alleged violation of the Globus agreement. The company is also accusing Long of trying to recruit at least one individual to “defect” with him to a new company.
Prior to filing their suit on June 2, Long filed suit in Louisiana state court seeking to recoup commissions allegedly due to him and to invalidate the restrictive covenants in the agreement. A federal judge in Pennsylvania has ruled that any litigation between the parties should be in Pennsylvania.
Globus Demands
Specifically, Globus wants, among other relief, Long and Vortex to be enjoined from competing with them for the two years stipulated in the distribution agreement and to be awarded unspecified damages.
The company is demanding a jury trial.
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Discussion
This is a fascinating development. In my practice we've seen similar outcomes with the revised protocol. The key differentiator seems to be patient selection criteria. Has anyone else noticed the correlation with BMI thresholds?
Great point. I'd push back slightly on the conclusion, the sample size in the cited study is too small to draw population-level inferences. That said, the directional signal is compelling and worth a larger RCT.
We implemented a similar approach last year. Early results are promising but we're still gathering 12-month follow-up data. Happy to share our protocol if anyone is interested.
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