Synergetics USA, Inc. Initiates Antitrust Lawsuit against Alcon, Inc.

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Thu Apr 17, 2008 8:30am EDT

O'FALLON, Mo.--(Business Wire)--
Synergetics USA, Inc. (NASDAQ: SURG), a leading microsurgical
device company, announced today that it has filed a civil, antitrust
lawsuit in the United States District Court for the Southern District
of New York, docket number 08-CV-3669, against Swiss-based Alcon, Inc.
and its primary operating subsidiary in the U.S., Alcon Laboratories,
Inc. Synergetics asserts that it has suffered losses in the tens of
millions of dollars resulting from Alcon's alleged unfair practices
and seeks a recovery that it believes could exceed $100 million.

   Alcon, Inc. is majority owned by Nestle, S.A., the world's largest
food and beverage company, and is self-described as the largest and
most trusted eye care company worldwide.

   This lawsuit is being filed by Hanly Conroy Bierstein Sheridan
Fisher & Hayes, LLP, New York City, in conjunction with SimmonsCooper
LLC, East Alton, Illinois. Both firms have specific expertise in
complex commercial litigation, and after thorough analysis of the
merits of Synergetics' position, have agreed to represent Synergetics'
in this litigation on a contingency-fee basis.

   In its filing with the Court, Synergetics alleges that Alcon has
used its monopoly power in the market for vitrectomy machines used in
vitreoretinal surgery, to control purchasing decisions in favor of its
surgical illumination sources and associated accessories, and has done
this to the detriment of sales of Synergetics' products, particularly
of the Photon(TM) line of light sources, light pipes, laser probes and
other accessories. The lawsuit describes anti-competitive behaviors,
which include commercial disparagement of Synergetics' products;
payment of grant monies to surgeons, hospitals and clinics in order to
influence purchasing decisions; the maintenance of an Advisory Board
comprised of hundreds of surgeons, each of whom are required to buy
Alcon's products for their practices, and many of whom receive
benefits far beyond their contributions, including annual six-figure
consulting fees; predatory pricing; the hiring of a key Synergetics'
manager to gain access to specific key product information; an
unlawful rebate program; and a threat to Synergetics of further market
lock-out unless given a license to use some of Synergetics' key
patented technologies. The suit also describes an alleged scheme
employed by Alcon to gain and maintain market share by making sales of
its light pipes conditional to sales of its patented fluid collection
cassettes that are required in order to perform each vitreoretinal
surgery.

   "For years Synergetics and other smaller companies have been
forced to watch as Alcon unfairly and increasingly controlled the
vitreoretinal surgical markets, escalating healthcare costs while
stifling innovative and cost effective technological advances. This
activity has been detrimental to surgeons and patients, not to mention
the healthcare system. Our experience has convinced us that without
this action, Alcon will drive all other players from the vitreoretinal
surgical market," commented Gregg D. Scheller, President and Chief
Executive Officer of Synergetics USA, Inc. "The price of vitreoretinal
surgery has skyrocketed under Alcon's dominance. Unfair business
practices hurt all players in our industry. Although we have a
substantial neurosurgical business in which we compete with other
large competitors, this type of egregious behavior is never
encountered," Scheller concluded.

   About Synergetics USA, Inc.

   Synergetics USA, Inc. is a leading medical device company focused
on progressing the standard of care for microsurgeons and their
patients by seeking to improve surgical patient outcomes through the
delivery of innovative improvements in quality, delivery and cost. The
Company focuses on the vitreoretinal, neurosurgery and ear, nose and
throat surgery markets. The distribution channels include a
combination of direct and independent sales organizations, and
important strategic alliances with market leaders.

   Forward-Looking Statements

   Some statements in this release may be "forward-looking
statements" for the purposes of the Private Securities Litigation
Reform Act of 1995. In some cases forward-looking statements can be
identified by words such as "believe," "expect," "anticipate," "plan,"
"potential," "continue" or similar expressions. Such forward-looking
statements include risks and uncertainties, and there are important
facts that could cause actual results to differ materially from those
expressed or implied by such forward-looking statements. These facts,
risks and uncertainties are discussed in Synergetics' Annual Report on
Form 10-K for the year ended July 31, 2007, as updated from time to
time in our filings with the Securities and Exchange Commission.

Synergetics USA, Inc.
Pamela G. Boone, 636-939-5100
Executive Vice President & CFO
http://www.synergeticsusa.com

Copyright Business Wire 2008
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