Sports Medicine

KFx Wins Again versus Arthrex as Fed Court Dismisses Arthrex Suit

SAN DIEGO–(BUSINESS WIRE)–KFx wins again versus Arthrex as United States Federal Court dismisses all of Arthrex’s claims in a suit filed in July 2015.

On January 12, 2016, The United States District Court in Trenton New Jersey ruled against Arthrex and for KFx Medical in an ongoing dispute that the United States Supreme Court had already refused to hear.

Arthrex filed suit on July 31, 2015 versus KFx and Dr. Joe Tauro alleging misappropriation of trade secrets, unfair competition, breach of contract and interference. On September 1st, KFx filed its response denying the allegations and asserting that Arthrex’s claims were barred by the judgment in favor of KFx in its earlier successful patent infringement lawsuit against Arthrex. In addition, KFx asserted new counterclaims for patent infringement based on Arthrex’s infringement of U.S. Patent Nos. 8,926,663 (“the ‘663 patent”) and 9,044,226 (“the ‘226 patent”).

KFx and Dr. Tauro promptly moved to have Arthrex’s lawsuit dismissed. The New Jersey Court agreed with KFx and Dr. Tauro and dismissed the case. KFx patent infringement counterclaims against Arthrex continue.

“As previously announced, this was a baseless suit at best by Arthrex, especially after having already appealed the case all the way to the United States Supreme Court. We are looking forward to the hearing of our new patent infringement case versus Arthrex and fully expect the outcome to be in our favor,” remarked Tate Scott, president and CEO of KFx.

In April, 2015 KFx Medical announced that the United States Court of Appeals for the Federal Circuit reaffirmed their January 20, 2015 ruling upholding a judgment of the United States District Court for the Southern District of California in which a jury found that Arthrex infringed KFx’s U.S. Patent No. 7,585,311 and two other patents, found the patents were valid, and awarded $29 million in damages. The District Court later awarded additional damages and interest to bring the total judgment to over $35 million. In the April, 2015 ruling an Arthrex petition for en banc rehearing was denied and the mandate to enforce the judgment issued. Arthrex paid in excess of $35 million to KFx Medical. In November 2015 KFx Medical announced that a petition for writ of certiorari filed by Arthrex was denied by the Supreme Court of the United States.

KFx is represented by Knobbe Martens of Newport Beach, CA and
COLE SCHOTZ P.C. of Hackensack, New Jersey.

About KFx Medical

Headquartered in Solana Beach, Calif., KFx Medical was founded in 2003 to develop products for tissue fixation in a variety of orthopedic surgical procedures performed on the shoulder, knee, foot, and ankle. KFx provides simple systems for orthopedic surgeons focused on sports medicine. The new AppianFx line of implants from KFx reattach tissue to and in bone in shoulder, knee, foot and ankle procedures which combined exceed well over 1 million annual surgical procedures in the United States. Product offerings include those that directly place and secure tissue into bone both with and without the use of sutures.

The company is privately held — Investors include Alloy VenturesCharter Life SciencesArboretum VenturesMontreux Equity Partners, and MB Venture Partners.


KFx Medical
W. Tate Scott, 619-742-2010

Josh Sandberg

Josh Sandberg is the President and CEO of Ortho Spine Partners and sits on several company and industry related Boards. He also is the Creator and Editor of OrthoSpineNews.

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