Medical device maker
) received an unfavorable verdict from the California federal
jury on Apr 3, 2014, relating to its use of the trade name
"NeuroVision" for its nerve monitoring platform. The verdict
entails NuVasive to pay an amount of $30 million in damages to
NeuroVision Medical Products.
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This is NuVasive's second loss to NeuroVision Medical Products in
a long-running trademark infringement lawsuit that began in Sep
2009. Shares of NuVasive plunged nearly 6.5% in the trading
sessions following the verdict to finally close at $35.68
NeuroVision Medical Products had first sued NuVasive about five
years ago, alleging infringement of its namesake trademark which
it had been using since the early 1990s. NeuroVision Medical
Products held that NuVasive deliberately concealed its knowledge
of the former's prior use of the mark while registering the same
with the U.S. Patent and Trademark Office (USPTO) in 2003.
In Oct 2010, a $60 million verdict was awarded by a District
Court in favor of NeuroVision Medical Products. The verdict
barred NuVasive from using the "NeuroVision" trademark in the
future which consequently prompted the company's 2011 appeal to
the Ninth Circuit (the Circuit Court).
The $60 million verdict was reversed by the Circuit Court in Sep
2012 on grounds of a misled jury and improperly excluded
evidence. The case was remanded back to the District Court for a
fresh trial under a different judge.
The jury of the second trial found that NuVasive had
intentionally infringed the trademark and as a result, awarded
$30 million in damages to NeuroVision Medical Products last
Thursday. However, NuVasive strongly disagrees with the verdict
and pledges to vigorously defend its right to use the
NuVasive intends to file post-trial motions in the U.S. District
Court for the Central District of California seeking judgment as
a matter of law, and, in the alternative, a new trial. If
necessary, it intends to appeal the verdict to the Ninth Circuit
Currently, NuVasive carries a Zacks Rank #3 (Hold). Some
better-ranked stocks in the medical products industry are
William Demant Holding A/S
). While Enzymotec sports a Zacks Rank #1 (Strong Buy), Covidien
and William Demant Holding carry a Zacks Rank #2 (Buy).