Corporate Greed Defeated: $9 Million Business Fraud Verdict in Favor of Gwilliam, Ivary, Chiosso, Cavalli, & Brewer Plaintiff

by Gary Gwilliam on November 15, 2011

“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.” -Gary Gwilliam

In one of the largest verdicts in the history of Gwilliam, Ivary, Chiosso, Cavalli, & Brewer, on November 4, 2011 a Alameda County jury awarded plaintiff Peter Allen, owner of Allmed Systems, Inc. in Pleasanton, California, $9,263,345. The defendant in the case, Healthtronics, recently purchased by ENDO Pharmaceuticals, was found by the jury to have  breached the contract and made intentional and negligent misrepresentations to Mr. Allen.  Allmed Systems, Inc. was represented by J. Gary Gwilliam and Jayme L. Burns.

Peter Allen and Allmed Systems

Allmed Systems, Inc. dba Lisa Laser USA in Pleasanton, California, is a small corporation run by Mr. Peter Allen. Allmed Systems, distributor of medical products, was on the cutting edge of prostate cancer treatment with it’s surgical Revolix lasers- the indisputable leader in surgical laser technology.

Mr. Allen entered into an exclusive distribution arrangement with Healthtronics in 2007. In the arrangement, 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.

Healthtronics’ Agenda

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 actions:

    • Lost Momentum: Healthtronics stymied the Revolix laser in the marketplace
    • Access: Healthtronics decreased patient access to the Revolix lasers treatments
    • Business Failure: Healthtronics’ actions almost cost Peter Allen his business
    • Blocked Market: Healthtronics refused to sell his laser to all urologists
    • Threats: Healthtronics actively told the medical community not to buy the lasers from Mr. Allen and threatened doctors with litigation if they did

Business Litigation

At Gwilliam, Ivary, Chiosso, Cavalli, & Brewer our lawyers have extensive and important experience handling a wide variety of fraud claims and business disputes  including:

For more information on this case, please contact J. Gary Gwilliam at 510-832-5411 or ggwilliam@giccb.com. If Mr. Gwilliam is not available please contact Jayme L. Burns or Jane Gorelick at 510-832-5411 or jburns@giccb.com or jgorelick@giccb.com.

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