Stryker and Zimmer Biomet Holdings Settled a Trade Secret Case
On November 28, 2017, Howmedica Osteonics, an orthopedics subsidiary of Stryker (SYK) and Zimmer Biomet Holdings (ZBH), settled a trade secret case. The district judge ordered the two parties to bring the settlement agreements within the next 60 days for case dismissal.
In March 2017, Stryker sued Zimmer Biomet Holdings. Stryker said that the company illegally used confidential information from former employees. Allegedly, the information was used to develop competing foot and ankle products. The case was filed in U.S. District Court in southern Texas.
Interested in SYK? Don't miss the next report.
Receive e-mail alerts for new research on SYK
On November 28, 2017, Stryker stock rose ~0.46%. The Vanguard S&P 500 ETF (VOO) also registered a rise of ~1% on the day. Stryker accounts for ~0.22% of VOO’s total holdings.
Stryker has also been involved in a number of other litigation cases with Zimmer Biomet Holdings. The two companies are rivals in the orthopedics space. In July 2017, Stryker won a patent infringement case against Zimmer Biomet Holdings for one of its safety products—a surgical cleaning wand used during orthopedic surgeries. Zimmer Biomet Holdings was charged with willful infringement of patents and the judge awarded damages of $248.7 million to Stryker. To learn more, read Stryker Won the Patent Case against Zimmer Biomet Holdings.
Stryker has also been involved in a number of hip implant lawsuits in the past few years. In October 2017, Stryker’s hip replacement lawsuits involving its LFIT Anatomic CoCr V40 Femoral Head components moved forward in multidistrict litigation. The lawsuit is in the U.S. District Court in Massachusetts. Two of the other hip implant makers Smith & Nephew (SNN) and Depuy Synthes, a subsidiary of Johnson & Johnson (JNJ), are also facing a number of hip implant lawsuits.