Life Spine is suing its former CEO, Michael Butler, alleging breaches of fiduciary duty, trade secret misappropriation and tortious interference. However, Mr. Butler described the litigation as retaliation for legal action he filed in April.
The medtech company said in a June 24 news release that Mr. Butler diverted hundreds of thousands of dollars from the company into his own sham entity to pay for personal expenses. The company also said he interfered with Life Spine’s overseas manufacturing relationships and shared non-public information. The lawsuit is pending in Cook County Circuit Court.
“Life Spine takes seriously its duty to protect its employees, partners, and customers from any misconduct that threatens our operations,” a company spokesperson said in the release.
Mr. Butler, who served as CEO until March, told Becker’s in a June 27 statement that he is still a majority shareholder in Life Spine and categorically denies the allegations from the company.
“My lawsuit (which I attested to under oath unlike Life Spine’s recent complaint, which contains no such verification and makes patently untrue allegations) details how the lenders and their hand-picked directors have hijacked the Board, engaged in self-dealing, discriminated against and harassed employees who resigned as a result, blocked refinancing efforts that would have paid them in full, and prioritized their own financial interests and exit over the company’s health and value,” he said. “Since the filing of my complaint, the lenders and their directors have continued to act unlawfully and take actions detrimental to Life Spine, its customers and the patients they serve.”
