Stryker Sues Former Exec

Stryker Corporation, Howmedica Osteonics Corp., and Stryker Employment Company, LLC (collectively “Stryker”) have filed a trade secrets lawsuit against former Stryker executive, Benny Hagag, and Hagag’s current employer, MicroPort Orthopedics, Inc., in New Jersey District Court.

Hagag has over 25 years of medical device experience. Since 2020, he has served as president of MicroPort Orthopedics. Prior to MicroPort Orthopedics, Hagag served in numerous executive leadership positions at Stryker. Hagag joined Stryker in 2013 when Stryker acquired MAKO Surgical Corp. He had held leadership positions at MAKO Surgical Corp. from its founding in 2004 through the acquisition.

The litigation arises from Hagag’s departure from Stryker. Stryker makes numerous allegations against Hagag claiming that Hagag “took with him thousands of files containing Stryker’s confidential and trade secret information including, among other things, Stryker’s strategic business documents and documents concerning Stryker’s marketing, sales, training, clinical, and consultant information.”

The complaint also alleges that MicroPort Orthopedics has been “aggressively developing its robotics capabilities.” It further asserts that Hagag’s “intimate knowledge of Stryker’s orthopaedics business, including—but not limited to—Stryker’s surgical robotics business would artificially accelerate MicroPort’s [Orthopedics] timetable to facilitate unfair and unlawful competition with Stryker.”

Stryker claims that prior to litigation the company tried to resolve the matter with MicroPort Orthopedics and Hagag through counsel. However, Stryker asserts that “[w]hile Stryker was focused on negotiating with them in good faith, MicroPort [Orthopedics] and Hagag were secretly building up their robotics capabilities in the United States.”

In the complaint, Stryker requests the following: “an injunction that orders Hagag and MicroPort [Orthopedics] to stop using, disclosing, and misappropriating Stryker’s confidential information and trade secrets; to return all such information; to cease wrongfully interfering with Stryker’s contracts with Hagag; to require Hagag to comply with his noncompete and other restrictive covenants; and to recover damages.”

As of the date of this article Hagag and MicroPort Orthopedics have not yet filed a response. However, the parties have stipulated and agreed to a preliminary injunction order.