Alphatec Holdings responded today to a lawsuit NuVasive filed yesterday against former NuVasive Board Member and current Alphatec Executive Chairman Patrick Miles.
The complaint alleges Mr. Miles breached his contract and fiduciary duty to NuVasive as an executive and board member when he purchased Alphatec stock and negotiated a position with the company while still employed by NuVasive. Alphatec's statement calls the complaint "baseless," "fictional" and "an attempt to inflict maximum damage to the public reputations of both Mr. Miles and Alphatec."
Furthermore, Alphatec maintains the complaint includes disclosures from NuVasive that breach contractual confidentiality obligations to Alphatec. The law firm filing the claim is also actively representing Alphatec in related matters.
Mr. Miles' contract with NuVasive included non-competition and non-solicitation provisions the company alleges he violated by joining a competitor shortly after resigning. He resigned from NuVasive on Oct. 1 and assumed his post at Alphatec on Oct. 2. Since then, one former NuVasive team member has also resigned and joined Alphatec.
Mr. Miles plans to file a response with Alphatec's support and intends to "clear his name," according to the statement.
"I did not leave NuVasive to damage the company; in fact, I remain a significant shareholder," said Mr. Miles as part of Alphatec's statement. "I chose to pursue a new opportunity at Alphatec because I want to align my talents and influence with a company that is focused on serving spine surgeons and their patients. The allegations made by NuVasive against me are clearly false, and typical of a management team reacting to mass departures of key, spine-experienced executives."
Since July 2017, three NuVaisve C-suite officers have resigned, and Alphatec CEO Terry Rich stands behind the company's new executive chairman. "We look forward to continuing to move our business forward under [Mr. Miles'] leadership," he said.