Laser Spine Institute co-founders now owe ex-business partner $300M+, judge rules

Spine

A circuit judge raised the award Laserscopic Spinal Centers of America co-founder Joe Samuel Bailey will receive from the remaining assets of the now-closed Laser Spine Institute, Florida Record reports.

What you should know:

1. Mr. Bailey will now receive more than $300 million from Tampa, Fla.-based Laser Spine Institute co-founders James St. Louis, DO, and Michael Perry, MD. Mr. Bailey and Drs. St. Louis and Perry were three of the four co-founders of Laserscopic Spinal Centers of America, the Tampa Bay Times reports. Mr. Bailey sued Drs. St. Louis and Perry for violations of fiduciary duty, defamation, slander, violation of the Florida Deceptive and Unfair Trade Practices Act, conspiracy, and tortious interference.

2. Mr. Bailey's case stems from the 2004 founding of Laserscopic Spinal Centers of America and its holding company.

3. LSCA grew its revenues quickly and attracted investor interest. The investor pressured the owners to sell, but Mr. Bailey did not want to sell. Soon after the investor expressed initial interest, Drs. St. Louis and Perry said they were leaving LSCA to create competing practice Laser Spine Institute with the investor.

4. Mr. Bailey claimed Laser Spine copied LSCA's business plan and lured employees and surgeons away, including LSCA's surgical team.

5. Mr. Bailey was first awarded $1.6 million, and after the case was heard again in a higher court, the award increased to $6.85 million. Laser Spine appealed, and Mr. Bailey was awarded more than $260 million, which has now increased to more than $300 million.

6. Mr. Bailey owns the majority of LSI's remaining assets, which are being liquidated.

Copyright © 2024 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.

 

Articles We Think You'll Like

 

Featured Webinars

Featured Whitepapers