09.20.13
Little Elm, Texas-based Retractable Technologies Inc. (RTI) emerged from a six-year lawsuit with a slightly better deal than the company it sued, Becton Dickinson and Company (BD). RTI accused the Franklin Lakes, N.J.-based medical device company of false advertising, as well as monopolizing the safety syringe, conventional syringe and safety IV (intravenous) catheter markets. The jury decided RTI’s Lanham Act claims—over false advertising—was valid, but the rest of the claims were not.
RTI was awarded just over $1 million over the Lanham Act claim, and the United States Court of the Eastern District of Texas is still deciding whether to award equitable relief under the Lanham Act including disgorgement, or the forced surrender of profits.
“We’re disappointed with the portion of the verdict that favored RTI, and we believe this aspect of the verdict was erroneous,” said Jeffrey S. Sherman, senior vice president and general counsel for BD. “We will file an appeal at the earliest opportunity.”
In connection with the verdict, BD will record a pretax charge of approximately $340 million (approximately $211 million after taxes and an estimated $1.06 per diluted share) in its 2013 fiscal fourth quarter results. Excluding this charge, BD is standing by its previously communicated guidance.
RTI was awarded just over $1 million over the Lanham Act claim, and the United States Court of the Eastern District of Texas is still deciding whether to award equitable relief under the Lanham Act including disgorgement, or the forced surrender of profits.
“We’re disappointed with the portion of the verdict that favored RTI, and we believe this aspect of the verdict was erroneous,” said Jeffrey S. Sherman, senior vice president and general counsel for BD. “We will file an appeal at the earliest opportunity.”
In connection with the verdict, BD will record a pretax charge of approximately $340 million (approximately $211 million after taxes and an estimated $1.06 per diluted share) in its 2013 fiscal fourth quarter results. Excluding this charge, BD is standing by its previously communicated guidance.