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Orthofix pays former executives $24M in damages

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Orthofix pays former executives $24M in damages

The payments were made after a California arbitrator found private text messages between Orthofix executives couldn’t be considered cause for firing.

Roughly three years after Orthofix Medical abruptly fired its CEO, CFO and chief legal officer citing inappropriate and offensive conduct, the legal battles it sparked between the company and its former executives have proved costly for the company — and the litigation isn’t over yet.

The Lewisville, Texas-based company revealed in its latest 10-Q filing that it has collectively paid the former executives about $24 million in damages in connection with their breach of contract claims related to their firings. The damages shine a new light on a difficult chapter for the company and leadership involved in the spine device maker’s 2023 C-suite ousting.

The Sept. 11, 2023, terminations rattled investors, with shares plunging 30% following the news. In subsequent litigation, texts exchanged privately between the men surfaced as having been part of the conduct that led the board to let them go.

Now attorneys for Keith Valentine, the late John Bostjancic and Patrick Keran, previously the company’s CEO, CFO and CLO, respectively, say the damages obtained via arbitration and settlements show their clients have prevailed on claims of “improper for cause termination,” according to a release on the damages from the law firm of Olshan Frome Wolosky.

“What is implicit in the arbitrator’s decision is these guys got railroaded and there was obviously no reason to be terminated for cause,” Kyle Bisceglie, one of the ex-Orthofix executives’ attorneys, told CFO Dive in an interview.


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