Orthofix Executives Sue Directors for $135M Over Defamation

Former executives of Orthofix, a public orthopedic medical device company, have filed a $135 million defamation lawsuit against certain directors following their September 2023 dismissal due to allegedly offensive conduct arising from private text messages. These messages, predating the executives' employment, were cited by Orthofix as cause for dismissal. The litigation claims the texts were accessed under false pretenses via an internal investigation led by the defendants. Olshan Frome Wolosky LLP, led by litigation partner Kyle Bisceglie, represents the plaintiffs, with co-counsel William White from Hill, Farrer & Burrill LLP. The executives argue their firing led to a sharp 30.2% drop in Orthofix's stock. They claim the dismissal was unjust, lacking material acts of moral turpitude, and the publication of their private messages was defamatory. The executives are also pursuing arbitration claims related to breach of employment and severance agreements.