December 16, 2014 – Delaware Chancellor Andre G. Bouchard granted a motion to stay proceedings in a shareholder derivative case pending the results of an appeal in the related patent litigation Stryker Corp. v. Zimmer Inc. et al., Civil Action No. 1:10-cv-01223 (W.D. Mich. 2010). The shareholder case alleges that Zimmer’s board members breached their fiduciary duties in allowing Zimmer to be held liable for over $200 million in damages owed as a result of the patent infringement litigation with Stryker. The patents-at-issue with regard to patent infringement suit are U.S. Patent No. 6,022,329, entitled “Irrigation handpiece with built in pulsing pump”; U.S. Patent No. 6,179,807, entitled “Surgical/Medical irrigator with removable tip and integrated suction conduit”; and U.S. Patent No. 7,144,383, entitled “Surgical/Medical irrigating handpiece with variable speed pump, integrated suction and battery pack.” The shareholder lawsuit, Hays v. Dvorak, case number 9768, is pending in the Delaware Court of Chancery.
By: Frederick C. Millett