IMED Surgical Files Federal Lawsuit Against Orthex, Dror Paley, OrthoPediatrics, and Squadron Capital

Turkish engineer’s external fixation technologies allegedly duplicated to develop the Orthex System with Point & Click Software, now sold by OrthoPediatrics Corp. and Squadron Capital


WEST PALM BEACH, Fla., Oct. 06, 2020 (GLOBE NEWSWIRE) -- IMED Surgical, LLC (“IMED”), a technology-based orthopedics medical device developer and manufacturer based in New Jersey, announced today that the company has filed a federal lawsuit against Dror Paley, Founder and Director of the Paley Orthopedic and Spine Institute; Orthex, LLC (“Orthex”), a wholly-owned subsidiary of OrthoPediatrics; OrthoPediatrics Corp. (“OrthoPediatrics”) (NASDAQ: KIDS); and Squadron Capital, LLC (“Squadron”), accusing Paley of misappropriating trade secrets and confidential information used to duplicate IMED’s patented and copyrighted technologies for the development of the Orthex External Fixation System and related software using Point and Click technology. The lawsuit was filed in the United States District Court for the Southern District of Florida, Case No. 1:20-cv-24065.

According to the Complaint, Tamer IŞIN, Founder and principal member of IMED, independently conceived and developed a novel external fixation system, of which trade secrets and technical know-how were disclosed to Paley through a consulting agreement. In direct violation of the agreement, Paley used confidential information to fraudulently claim the innovations as his own in a concealed filing of a US patent—despite IŞIN’s existing US Copyright and International Patent protections. Paley transferred ‘ownership’ of the technologies to Orthex, LLC. Most recently, these technologies were part of a $60 million acquisition made by OrthoPediatrics in June 2019, followed by a divestiture to Squadron Capital for $25 million in January 2020. The technologies stolen from IMED are currently marketed and sold by OrthoPediatrics, and by Vilex, LLC, a Squadron affiliate.

IMED first became aware of Paley’s activities in the U.S. approximately July 2019, after learning of a press release describing the purchase of Orthex and Vilex (collectively “Vilex”) and related technology by OrthoPediatrics for $60 million. As stated in OrthoPediatrics’ public announcement, “The Orthex Hexapod technology is most rapidly growing system, reaching sales of $3.1 million in 2018, increasing more than 50% year-over-year since receiving FDA clearance in March 2016.”

In January 2020, OrthoPediatrics sold substantially all assets related to the adult product offerings of Vilex in Tennessee, Inc. to Vilex LLC, a wholly owned subsidiary of Squadron Capital, LLC, for $25 million. The sale included a license to manufacture and sell products utilizing the external fixation technology.

“Since 1995, I have devoted my life’s work to developing this technology; my family sacrificed so much so that IMED could bring the Adam FrameTM External Fixation System to fruition,” explains IŞIN. “The years following our move to America [2007] were distressing for my newborn and two young children. While my days were consumed by IMED’s developments and working at several jobs to earn a living, my children felt lost, alone and disconnected from their surroundings.”

IŞIN continues, “Still, our personal adversities were a means to an end. When IMED began selling the Adam Frame in Turkey, the System was immediately life-changing. Compared to conventional systems, ours enabled surgeons to efficiently treat dozens more patients each day. Treatment was finally made accessible to all people.”

Having now uncovered the defendants’ duplicity and wrongdoing, the Complaint asks for a declaratory judgment of the ownership rights in the ‘377 patent, and that the Court enjoin Orthex, OrthoPediatrics, and Squadron from transferring, conveying, or taking any action affecting the ’377 patent until the ownership in question is settled.

About IMED Surgical
IMED Surgical, LLC, the developer of the Adam FrameTM External Fixation System, is a technology-based orthopedics medical device developer and manufacturer. Tamer IŞIN and his son, Zişan Cihangir IŞIN, are owners in IMED Surgical, LLC.

Legal Contact:
Mike King
mking@wintersking.com