News

Los Angeles — Medical device manufacturer OrthoTec, LLC significantly advanced its legal battle against New York-based private equity firm Healthpoint Capital, LLC and its principals John Foster and Mortimer Berkowitz. Last week, following a month-long trial in Los Angeles, OrthoTec obtained a fraud verdict against Surgiview, S.A.S., a Healthpoint portfolio company. OrthoTec’s theory of the case was that Foster, Berkowitz, and Healthpoint had orchestrated a fraudulent transfer of assets to Surgiview to prevent OrthoTec from collecting on a debt. The jury unanimously found for OrthoTec, awarding it $48 million, plus pre-judgment interest. OrthoTec estimates that, with interest, the award will total $75 million. OrthoTec CEO Patrick Bertranou commented that he is “a great believer in the jury system. The jurors really took our case to heart, and for that we are grateful.” Bertranou asserted that OrthoTec will now look to New York, where the same issues are slated to be tried later this year against Foster, Berkowitz, and Healthpoint. OrthoTec was represented at trial by Pete Ross and Ben Scheibe of the prominent business litigation boutique Ellis George LLP, with offices in Los Angeles and San Francisco. Surgiview was represented by Brad Brian of Munger, Tolles & Olson LLP.