CARLSBAD, Calif., Feb. 11, 2014 (GLOBE NEWSWIRE) -- Alphatec Holdings, Inc. (Nasdaq:ATEC), the parent company of Alphatec Spine, Inc., a medical device company that provides physician-inspired solutions for patients with spinal disorders, announced today that a jury in the OrthoTec, LLC vs. Surgiview S.A.S. case pending before the Superior Court of California, Los Angeles County, reached a verdict. Surgiview, a subsidiary of Scient'x S.A.S., which was acquired by Alphatec in 2010, was found to have transferred assets for less than fair market value in connection with Surgiview's purchase of certain assets of Eurosurgical S.A. in May 2006, and to have interfered with certain contractual rights of OrthoTec.
Although a formal judgment has not yet been entered, the jury has awarded monetary damages in the amount of $47.9 million, plus interest against Surgiview related to various causes of action alleged by OrthoTec. Prior to a judgment being entered against Surgiview there will be a second trial to determine if Alphatec can be held responsible for the amount of the damages assessed against Surgiview. This second trial is scheduled to occur within the next 60 days. As a result, in the fourth quarter of 2013, Alphatec expects to record a non-recurring expense of $47.9 million associated with yesterday's damages award and trial-related litigation expenses of $3.7 million that were incurred during the fourth quarter of 2013. Additional information on this ongoing litigation will be provided on the Company's upcoming fourth quarter and full year 2013 earnings call.
"While Alphatec is disappointed with the outcome, we continue to believe that the facts and the law do not support the jury's findings and Alphatec will vigorously defend itself in any future litigation related to this matter," said Les Cross, Chairman and CEO of Alphatec Spine. Mr. Cross added, "Moving forward, Surgiview will file appropriate legal motions."
This action against Surgiview was initiated in 2008. Following Alphatec's acquisition of Scient'x S.A.S. in 2010, Alphatec was added as a defendant in this case in 2012.
Further information regarding this litigation has been set forth in the Company's filings with the U.S. Securities and Exchange Commission (the "SEC") since December 2009. Such information is available on both the SEC's website at www.sec.gov and the Company's website at www.alphatecspine.com.
About Alphatec Spine
Alphatec Spine, Inc., a wholly owned subsidiary of Alphatec Holdings, Inc., is a medical device company that designs, develops, manufactures and markets physician-inspired products and solutions for the treatment of spinal disorders associated with trauma, congenital deformities, disease and degeneration. The Company's mission is to combine innovative surgical solutions with world-class customer service to improve outcomes and patient quality of life. The Company and its affiliates market products in the U.S. and in over 50 countries internationally via a direct sales force and independent distributors.
Additional information can be found at www.alphatecspine.com.
Forward Looking Statements
This press release may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainty. Such statements are based on management's current expectations and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the forward looking statements. Alphatec Spine cautions investors that there can be no assurance that actual results or business conditions will not differ materially from those projected or suggested in such forward-looking statements as a result of various factors. Forward looking statements include references to any post-verdict activities that may be undertaken by Alphatec, Surgiview or OrthoTec. Please refer to the risks detailed from time to time in Alphatec Spine's SEC reports, including its Annual Report Form 10-K for the year ended December 31, 2012, filed on March 4, 2013 with the Securities and Exchange Commission, as well as other filings on Form 10-Q and periodic filings on Form 8-K. Alphatec Spine disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, unless required by law.