Spartan, Globus Seek To Settle Antitrust Suit 

Spartan Medical asked a San Antonio federal judge to pause an antitrust suit it filed just two weeks ago while it hammers out a settlement of claims that Globus Medical is trying to usurp its federal bone graft contracts, reported Bloomberg Law.

The suit accuses Globus of abruptly canceling the distribution agreements between the two companies in an effort to undercut Spartan’s successful bid on part of a US$2.1 billion contract with the Pentagon and the Department of Veterans Affairs. It was filed in the US District Court for the Western District of Texas.

Spartan Medical, a medical device supplier, filed a lawsuit accusing Globus Medical, a device maker, of breaking its US$2.1 billion contract to supply Veterans Affairs hospitals with medical supplies.

Spartan Medical and Globus subsidiary Bone Bank Allografts (BBA) signed a deal in 2016 for BBA to supply Spartan with medical products, which Spartan would then distribute to VA hospitals. 

BBA sent a letter to Spartan in May 2018 stating it would provide it with an “uninterrupted source of supply” of medical products, according to the lawsuit. But in November, BBA sent Spartan a letter terminating the agreement without providing a reason, an action Spartan claims is forbidden in the contract. The deal was worth US$2.1 billion, according to the lawsuit.

Full Content: Bloomberg

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