$19.3 Million Judgment in Spinal Device Contract Dispute

In 2017, NuVasive Inc., a prominent manufacturer of spinal treatment products, initiated legal action against Absolute Medical LLC and its owner, Greg Soufleris, for breaching an exclusive distribution agreement. The agreement granted Absolute Medical the sole right to distribute NuVasive’s spinal disease treatment devices within designated Florida territories for five years, along with a post-termination noncompete period of 12 months.

According to NuVasive, Soufleris dissolved Absolute Medical and created Absolute Medical Systems (AMS) in 2017. He was joined by former sales representatives Dave Hawley and Ryan Miller, both of whom had worked under the original agreement. AMS, the newly formed entity, then allegedly partnered with Alphatec Spine, a direct competitor of NuVasive. NuVasive claimed that Hawley and Miller continued selling competing spinal products to the same surgeons they had previously served on NuVasive’s behalf, in violation of their contractual obligations.

The Allegations

NuVasive expanded its lawsuit in 2019 through a second amended complaint to include Absolute Medical Systems, Hawley, and Miller, asserting claims for breach of contract, tortious interference, and other business torts. A turning point in the case came in November 2023 when U.S. District Judge Carlos E. Mendoza found that all defendants had engaged in what he described as "brazen, serious misconduct." The misconduct, he wrote, included “numerous falsehoods, misrepresentations, intentional spoliation of evidence and falsified testimony.”

As a result of these findings, the court granted default judgment in NuVasive’s favor on multiple claims. This effectively removed the need for a trial on liability, placing the focus squarely on damages. The claims against Hawley and Miller were later dismissed with prejudice following a confidential settlement agreement, according to an August 2024 order.

The Damages

In January 2025, U.S. Magistrate Judge Leslie Hoffman Price issued a report recommending $19.3 million in damages to NuVasive. The recommendation was based on the expert testimony of forensic accountant Misty L. Decker, who assessed NuVasive’s lost profits from surgeons who had ceased doing business with the company after the defendants joined Alphatec.

The defendants attempted to undermine Decker’s analysis by challenging her methodology. They argued she failed to properly account for fluctuating surgeon sales volumes and other economic variables. Additionally, they objected to the exclusion of testimony from Dr. Paul Sawin, one of the surgeons in question, whose arbitration testimony and declaration they sought to introduce under a hearsay exception. However, Judge Mendoza found no compelling basis for Sawin’s unavailability and noted the defendants had not made efforts to secure his live or remote testimony.

Further challenges were raised regarding Decker’s failure to adjust her analysis for changes in surgeon behavior over time, including a reduction in business during 2019. Judge Mendoza dismissed these objections, stating that the arguments lacked citation to the record and failed to undermine the sufficiency of Decker’s testimony. He emphasized that the magistrate judge had thoroughly addressed the matter and that he agreed with her findings.

The Ruling

On March 21, 2025, Judge Mendoza entered final judgment adopting the magistrate judge’s report in full and ordering Greg Soufleris, Absolute Medical LLC, and Absolute Medical Systems LLC to pay $19.3 million in damages to NuVasive. The court ruled that Soufleris and his companies would be jointly and severally liable for the amount.

In his order, Judge Mendoza acknowledged the lengthy and complex nature of the litigation, stating, “The tortured history of this case spans over six years and multiple venues.” He further noted that Decker’s testimony met the “reasonable certainty” standard required for establishing lost profits in commercial litigation. The judgment marks a conclusive end to a dispute that saw multiple procedural twists, severe discovery misconduct, and a substantial financial penalty for breaching a restrictive business arrangement.

The Law Firms Involved

NuVasive was represented by attorneys Christopher W. Cardwell, Marshall T. McFarland, and Mary T. Gallagher of Gullett Sanford Robinson & Martin PLLC, alongside Diana N. Evans and Robert C. Mayfield of Bradley Arant Boult Cummings LLP.

The defense was represented by Kenneth J. McKenna of Dellecker Wilson King McKenna Ruffier & Sos LLP.

What’s Next?

With the final judgment in place, the defendants may pursue appellate review, although their procedural conduct and the imposition of default judgment on liability will likely limit their avenues for appeal. Any appeal would need to overcome findings of evidence spoliation and perjury—serious judicial determinations that are rarely disturbed.

The ruling serves as a stark reminder to medical device distributors and sales professionals of the legal risks associated with violating noncompete and exclusivity clauses. In a competitive field driven by high-stakes surgeon relationships and regional sales exclusivity, this case may have long-lasting implications for how manufacturers enforce distribution agreements and protect market share.