Competitor Cries Poaching Against BSX In Suit
Natick-based Boston Scientific Corp. (BSX) has been accused of poaching employees from its competitor, Abbott Laboratories, in a lawsuit filed in U.S. District Court on March 13.
Abbott, an Illinois-based company that makes and sells medical devices, alleges in the suit that a Georgia-based sales executive has solicited three employees to work for him at Boston Scientific, since he began employment with the company after more than 20 years as an Abbott employee.
Non-Compete Central To Suit
According to the lawsuit, the employee, Samuel Conaway, signed an agreement with Abbott not to solicit employees for a period of two years after he left the company to join Abbott January 2012. Abbot said in the lawsuit that Conaway has recruited Abbott employees – and one reported it to an Abbott supervisor. The lawsuit alleges that another sales executive assisted Conaway with recruiting efforts, as Conaway was not allowed to solicit directly.
The lawsuit also mentions a speech Conaway allegedly made at a national sales conference hosted by Boston Scientific earlier this year, during which Conaway reportedly said it was his intention to "kick Abbott's ass."
Boston Scientific and Conaway are named in the lawsuit, which claims breach of contract and tortuous interference. A Boston Scientific spokesman declined comment, and the company hadn't filed a formal response to the allegations as of this.
Dueling Medical Device Makers
Abbott, which has a facility in Worcester, seemingly eclipses Boston Scientific in size and reach. Like Abbott, Boston Scientific makes and sells medical devices, but BSX is more than four times smaller by annual revenue. According to Boston Scientific, the company does business in more than 40 countries and employs 24,000, while Abbott says it works in more than 150 companies, and employs 70,000.
Boston Scientific, which is in the process of relocating its headquarters to Marlborough, named Abbott as a direct competitor in its most recent annual report, which was released in February, and the two have also done business together in the past. The two had a manufacturing and distribution agreement for a stent known as the Xience V. Abbott paid BSX a milestone payment of $250 million in 2010 when the stent won marketing approval in Japan.
Abbott is seeking damages in the lawsuit, claiming that time and money spent on training its employees has been lost through poaching. Abbott is also seeking an order barring Conaway and Boston Scientific from soliciting employees.
Scott Stoffel, a spokesman for Abbott, commented briefly on the suit.
"Abbott intends to protect our investment in our people and confidential information," Stoffel said.
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