NuVasive bets on a victory in appeal of $28m loss to distributor

NuVasive (NSDQ:NUVA) said it is appealing a $27.8 million loss to distributor Madsen Medical in a sales poaching case, with the new case slated for April 18.

Madsen Medical, a Nevada-based distributor, sued San Diego-based NuVasive in September 2013, after being fired in 2012. Owner Kris Madsen alleged that NuVasive breached its contract when it lured six Madsen Medical reps to sell directly to their former Madsen clients, according to court documents.

A jury awarded Madsen $41.8 million in February 2016, though the award was later cut to $27.8 million by Judge Barry Ted Moskowitz, who also spiked an attempt to overturn the loss in June 2016.

Madsen was also awarded $1.1 million for attorney’s fees and costs in July 2016, NuVasive said.

NuVasive said that it appealed both the verdict and the award of attorney’s fees and costs, but did not appeal with respect to breach of contract, which cost approximately $300,000.

The appeals hearing has been set for April 18, the company said, adding that it has secured a bond to cover the amount of the judgement, as well as attorneys’ fees and costs.

NuVasive said that it, “based on its own assessment as well as that of outside counsel, believes that upon appeal the judgment will be vacated and have deemed it probable that is the outcome for all appealed judgments,” according to an SEC filing.

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