Oakland Jury Awards $9 Million Against Multi-National Corporation For Business Fraud and Breach of Contract.
Since November verdict, judgment entered on February 9, 2012 brings award in excess of $11 Million.
As the Occupy Oakland General Strike was raging outside the courthouse doors, local business owner, Peter Allen was waiting for a jury to tell a large corporation that Oakland would not tolerate lies and greed in business dealings. Mr. Allen had been fighting a lawsuit against Texas-based corporation, Healthtronics, Inc. for three years. Closing arguments were given on Wednesday, November 2, 2011 the same day as the Occupy Oakland General Strike. On Friday, November 4, 2011, the jury returned a verdict in Mr. Allen's favor for over $9 million finding that Healthtronics had breached the contract and made intentional misrepresentations to Peter Allen. Healthtronics was recently purchased by ENDO Pharmaceuticals (Nasdaq ENDP). Long-time Oakland lawyer, J. Gary Gwilliam represented Peter Allen. Mr. Gwilliam said:
"This case was very topical. It was exactly what the 99% are complaining about - corporate greed, corporate misconduct and corporate misrepresentations by a large company taking advantage of a small business owner. The jury agreed that this kind of conduct will no longer be tolerated."
Peter Allen is the owner of Allmed Systems, Inc. dba Lisa Laser USA in Pleasanton, California, a small corporation run by Mr. Allen. Allmed Systems is a distributor of medical products including surgical Revolix lasers used to treat prostate conditions. Mr. Allen entered into an exclusive distribution arrangement with Healthtronics in 2007 whereby Healthtronics agreed to use its best efforts to market and sell the Revolix laser and increase patient access to what was indisputably the best surgical laser on the market for prostate issues. Instead of using its best efforts to market the Revolix laser to the entire medical community, Healthtronics used it to entice urologists to build partnerships with Healthtronics thereby maximizing its own profits at Peter Allen's expense. In doing so, Healthtronics stymied the Revolix laser in the marketplace and decreased patient access to the Revolix lasers treatments. Healthtronics' actions almost cost Peter Allen his business. Not only did they refuse to sell his laser to all urologists, but they actively told the medical community not to buy it from him and threatened doctors with litigation if they did.
The Alameda County jury came back with a verdict of $9,263,345.00 in favor of Peter Allen and Allmed Systems, Inc. They found that Healthtronics had breached the contract and made intentional and negligent misrepresentations to Peter Allen. Since the November trial, a judgment was entered on February 9, 2012 in Alameda Superior Court awarding plaintiffs attorneys fees in the amount of $1,745,740.00, costs in an amount to be determined and interest on the entire judgment in the amount of 10% per annum from the date of the November verdict. The award is now in excess of $11 Million. The case is Allmed Systems, Inc. v. Healthtronics, Inc. Case No.: VG09488663. Allmed Systems, Inc. was represented by J. Gary Gwilliam and Jayme L. Burns of Gwilliam, Ivary, Chiosso, Cavalli & Brewer and Richard E. Korb of Korb Law Offices.
