The now-bankrupt spinal implant maker is sued for fraud and breach of contract for failing to develop, market and pay royalties on technology it licensed from CNA.
There’s more bad news afoot for for now-bankrupt Innovative Spinal Technologies. A pair of doctors is suing the Mansfield, Mass.-based implants maker for fraud and breach of contract.
The lawsuit, filed in U.S. District Court for the Northern District of New York by Creative NeuroScience Applications LLC, accuses IST and former CEO Scott Schorer of breaching an agreement to license a patent developed by doctors Frank Boehm Jr. and Benedetta Melnick for percutaneous placement of spinal screws and connecting rods.
According to the suit, the parties signed an agreement for IST to license the patent on the last day of 2004, after Schorer and IST said they planned to incorporate the technology into an IST device, obtain the necessary approvals, put it through clinical trials and get it to market.