FOR IMMEDIATE RELEASE: Winston-Salem, NC, June 22, 2007 -Dan Grayson, former Vice President of TruFUSE Sales for minSURG Corporation, a wholly owned subsidiary of Orthopedic Development Corporation (ODC), Clearwater, Florida, filed litigation against those entities and James Doulgeris, the companys President and CEO on May 8, 2007 at 9:14 am in the United States District Court for the Middle District of North Carolina.
The suit alleges Fraudulent Inducement to Contract and Breach of Contract. Orthopedic Development Corporation filed a Complaint against Grayson, an investor and a purported freelance writer in Hillsborough County, Florida, the same day at 4:15 pm.
If its a matter of whos got the most funding to pursue a lawsuit, well, of course ODC does because theyre spending the investors monies, not their own, Grayson elaborated. However, the truth is the truth. I am confident my story will be vindicated in a court of law.
Grayson also stated, There are other questions that have gone unaddressed, such as; Where are their clinical studies? Why wont they release any of the results from random surgeons? Why have noted, world famous surgeons, such as Jurgen Harms, M.D., stated, Without biomechanical test and clinical outcome studies, I dont see a chance to use this product clinically?
TruFUSE, manufactured by LifeLink Tissue Bank, a Tampa, FL not-for-profit company, is an allograft product used for facet fusion in select spine surgical procedures.
Articles regarding the lawsuit have recently appeared on www.Sharesleuth.com, a securities watchdog website, The St. Petersburg Times, Floridas largest circulation newspaper and was even mentioned in the New York Times.
According to the Sharesleuth story:
Sharesleuth examined some of the documents given to patients and investors and found contradictions in the companys story.
Grayson said in the suit that soon after he was recruited to ODC, he became aware of graft design and graft tolerance concerns that could lead to post-operative problems for patients.
According to the suit, Doulgeris said BayCare Health System, a nine-hospital group in the Tampa Bay area, was conducting a cost and outcome study of the TruFUSE procedure, and that ODC was compiling information from surgeons elsewhere.
The BayCare study did not go forward because of BayCares concerns about certain elements of the program, including a potential conflict of interest on the part of one of the doctors that ODC chose to supervise it.
Grayson suit said he also learned that the company had no clinical study or company data to support claims about the number of procedures performed, the success rate, the average recovery time or other benefits.
As an officer of the company, he told Sharesleuth, I had a fiduciary duty to investors, patients, surgeons and hospitals. It was my job, as the face of the company with regard to sales, to make sure that we were marketing a product that would benefit all those groups.
Orthopedic Development Corps president said in an affidavit in a federal court case in North Carolina that he had never engaged in business in that state, had not gone there to recruit a sales executive orotherwise traveled there.
But Sharesleuth.com, which posted an investigative report on ODC on June 8, has copies of e-mails that appear to disprove those assertions.
The e-mails exchanged last summer between Doulgeris and Grayson include messages from Doulgeris that provide details of his travels to North Carolina for business meetings. Those details include flight numbers and times, and the names and locations of the hotels in which he stayed.
New York, New York