Zimmer accuses Stryker, ex-sales rep of 'Trojan Horse' poaching scheme
Zimmer Holdings accuses Stryker Corp. and a former Zimmer sales rep of scheming to create a 'Trojan Horse' plan designed to lure Zimmer reps to work for Stryker.
Zimmer (NYSE:ZMH) accused Stryker (NYSE:SYK) of scheming to insert a "Trojan horse" into its Texas sales operation, alleging in a lawsuit filed this week that its orthopedics rival aims to lure Zimmer reps and their accounts over to Stryker.
The lawsuit, filed in the U.S. District Court for Northern Indiana against Stryker and an ex-Zimmer rep named Cory Stovall, alleges that Stryker agreed to pay Stovall a bounty for every Zimmer customer he converts to Stryker.
"Stryker has incentivized Stovall to breach his agreement by promising an enormous salary and large monetary bonuses based on the volume of Zimmer implant business he can transition to Stryker from his former Zimmer customers," Zimmer alleges in the documents. "Specifically, upon information and belief, in addition to a purportedly guaranteed $27,000 per month salary, Stryker has promised to pay Stovall $30,000 for every $500,000 worth of Zimmer business he is able to convert from his former Zimmer customers to Stryker."