IMED Surgical alleges orthopedic practice founder duplicated company's product

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IMED Surgical filed a federal lawsuit against Dror Paley, MD, the founder and director of Paley Orthopedic and Spine Institute, and others, alleging Dr. Paley illegally stole IMED's technology to help develop the Orthex External Fixation System.

IMED Surgical claims Dr. Paley used trade secrets and confidential information to duplicate IMED's system. IMED included Orthex, OrthoPediatrics and Squadron Capital in the lawsuit.

Tamer Isin, IMED founder and principal member, said in the lawsuit that Dr. Paley learned trade secrets and technical know-how while he was a consultant for the company. He alleged that Dr. Paley used confidential information to claim IMED's novel external fixation system was his own.

Dr. Paley allegedly filed for a patent, despite Mr. Isin holding copyright and international patent protections. Dr. Paley then sold the technology to Orthex, the lawsuit alleges. The technologies were then included in a $60 million sale to OrthoPediatrics in June 2019, and the platform was divested to Squadron Capital for $25 million in January 2020. The system is now being marketed and sold by OrthoPediatrics.

IMED said it became aware of Dr. Paley's activities in July 2019.

IMED is seeking a declaratory judgment on who owns the Orthex External Fixation System, and is seeking a temporary ban on sales activity around the system.

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