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`EXHIBIT 12
`TO TRENT TANNER DECLARATION ISO
`NUVASIVE’S COMBINED MOTIONS IN LIMINE
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`·1· · · · · · · · ·UNITED STATES DISTRICT COURT
`· · · · · · · · · SOUTHERN DISTRICT OF CALIFORNIA
`·2· · · · · · · · · · · ·SAN DIEGO DIVISION
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`·3
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`·4· ·NUVASIVE, INC., a Delaware· · · · )
`· · ·corporation,· · · · · · · · · · · )
`·5· · · · · · · · · · · · · · · · · · ·)
`· · · · · · · · ·Plaintiff,· · · · · · )
`·6· · · · · · · · · · · · · · · · · · ·)
`· · · · · vs.· · · · · · · · · · · · · )· Case No.
`·7· · · · · · · · · · · · · · · · · · ·)· 3:18-CV-00347-
`· · ·ALPHATEC HOLDINGS, INC., a· · · · )· CAB-MDD
`·8· ·Delaware corporation and· · · · · )
`· · ·ALPHATEC SPINE, INC., a· · · · · ·)
`·9· ·California corporation,· · · · · ·)
`· · · · · · · · · · · · · · · · · · · ·)
`10· · · · · · · ·Defendants.· · · · · ·)
`· · ·__________________________________)
`11
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`12
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`13· · · · · ·HIGHLY CONFIDENTIAL - ATTORNEY'S EYES ONLY
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`14· · · · · · · · · ·VIDEOTAPED DEPOSITION OF
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`15· · · · · · · · · · · · ·NUVASIVE, INC.
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`16· · · · · · · · · · · · ·GREGORY LUCIER
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`17
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`18· · · · · · · · · · · · January 17, 2020
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`19· · · · · · · · · · · · · 9:06 a.m.
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`20
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`21· · · · · · · 3580 Carmel Mountain Road, Suite 300
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`22· · · · · · · · · · ·San Diego, California
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`23
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`24· · · · · · · · · ·Lorie Rhyne, CSR No. 12905
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`25
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`EXHIBIT 12, Page 160 of 189
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`·1· · · · · · · · APPEARANCES OF COUNSEL
`·2
`·3· ·On Behalf of the Plaintiff:
`·4· · · · PAUL D. TRIPODI II, ESQ.
`·5· · · · Wilson Sonsini Goodrich & Rosati P.C.
`·6· · · · 633 West Fifth Street, Suite 1550
`·7· · · · Los Angeles, California 90071
`·8· · · · (323) 210-2900
`·9· · · · ptripodi@wsgr.com
`10
`11· ·On Behalf of the Defendants:
`12· · · · NIMALKA R. WICKRAMASEKERA, ESQ.
`13· · · · Winston & Strawn LLP
`14· · · · 333 South Grand Avenue, Suite 3800
`15· · · · Los Angeles, California 90071-1543
`16· · · · (213) 615-1700
`17· · · · nwickramasekera@winston.com
`18
`19· ·Videographer:· GIANNI ORTIZ
`20· ·Also Present:· MICHAEL DOYLE, in-house counsel,
`21· · · · · · · · · NuVasive
`22· · · · · · · · · CRAIG HUNSAKER, Executive Vice
`23· · · · · · · · · President and General Counsel
`24· · · · · · · · · at Alphatec Spine
`25· · · · · · · · · TYSON MARSHALL, Associate General
`· · · · · · · · · · Counsel, Alphatec Spine
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`·1· · · · · · · · · · · INDEX OF EXAMINATION
`·2· ·WITNESS:· GREGORY LUCIER
`·3· ·EXAMINATION· · · · · · · · · · · · · · · · · PAGE
`·4· ·By Ms. Wickramasekera· · · · · · · · · · · · · 5
`·5
`·6· · · · · · · · · · · ·INDEX TO EXHIBITS
`·7· ·DEFENDANTS· DESCRIPTION· · · · · · · · · · · PAGE
`·8· ·Exhibit 1· ·E-mail dated 9/8/2016,
`·9· · · · · · · ·NUVA_ATEC0318999· · · · · · · · ·145
`10· ·Exhibit 2· ·Letter dated September 8, 2016,
`11· · · · · · · ·NUVA_ATEC0319003 to
`12· · · · · · · ·NUVA_ATEC0319004· · · · · · · · ·149
`13· ·Exhibit 3· ·E-mail dated 9/7/2016, NUVA_ATEC0332186
`14· · · · · · · ·to NUVA_ATEC0332187· · · · · · · 156
`15· ·Exhibit 4· ·Project Titan, Management Presentation
`16· · · · · · · ·for NuVasive, NUVA_ATEC0319062· ·205
`17· ·Exhibit 5· ·Management Presentation, Alphatec Spine,
`18· · · · · · · ·A Leading Provider of Advanced
`19· · · · · · · ·Spinal Fusion Platforms and Systems,
`20· · · · · · · ·NUVA_LLIF000854436 to
`21· · · · · · · ·NUVA_LLIF000854524· · · · · · · ·205
`22· ·Exhibit 6· ·E-mail dated 10/1/2017,
`23· · · · · · · ·NUVA_ATEC0318549· · · · · · · · ·245
`24· ·Exhibit 7· ·E-mail dated 10/2/2017,
`25· · · · · · · ·NUVA_ATEC0318492· · · · · · · · ·263
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`·1· · · · · ·VIDEOTAPED DEPOSITION OF GREGORY LUCIER
`·2· · · · · · · · · · · ·JANUARY 17, 2020
`·3
`·4· · · · · · · THE VIDEOGRAPHER:· Good morning.· This is
`·5· ·the beginning of media number 1 in the deposition of
`·6· ·Gregory Lucier in the matter of NuVasive, Inc. versus
`·7· ·Alphatec Holding, Inc., et al.· This deposition is
`·8· ·taking place at 3580 Carmel Mountain Road, Suite 300,
`·9· ·San Diego, California 92130.
`10· · · · · · · Today's date is January 17th, 2020.· The
`11· ·time is approximately 9:06 a.m.· The court reporter
`12· ·today is Lorie Rhyne.· I'm Gianni Ortiz, the
`13· ·videographer, an employee of Litigation Services.
`14· · · · · · · This deposition is being videotaped at all
`15· ·times unless specified to go off the video record.
`16· · · · · · · Would all present please identify
`17· ·themselves, beginning with the witness?
`18· · · · · · · THE WITNESS:· Gregory T. Lucier.
`19· · · · · · · MR. TRIPODI:· Paul Tripodi of Wilson Sonsini
`20· ·Goodrich & Rosati on behalf of NuVasive, Inc.· With me
`21· ·today is Mike Doyle of NuVasive, Inc.
`22· · · · · · · MS. WICKRAMASEKERA:· Nimalka Wickramasekera
`23· ·from Winston & Strawn on behalf of the Alphatec
`24· ·defendants.· And with me is Craig Hunsaker and
`25· ·Tyson Marshall from Alphatec.
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`·1· · · · · · · THE VIDEOGRAPHER:· Thank you.
`·2· · · · · · · Would the reporter please swear in the
`·3· ·deponent?
`·4· · · · · · · · · · · ·GREGORY LUCIER,
`·5· · ·having been first duly sworn, testified as follows:
`·6
`·7· · · · · · · · · · · · ·EXAMINATION
`·8
`·9· ·BY MS. WICKRAMASEKERA:
`10· · · · ·Q.· ·Good morning.
`11· · · · ·A.· ·Good morning.
`12· · · · ·Q.· ·Could you state and spell your name for the
`13· ·record?
`14· · · · ·A.· ·Gregory T. Lucier.· G-R-E-G-O-R-Y
`15· ·L-U-C-I-E-R.
`16· · · · ·Q.· ·Mr. Lucier, do you know how many lawsuits
`17· ·NuVasive is currently involved with against Alphatec?
`18· · · · ·A.· ·I'm not clear on the total number.
`19· · · · ·Q.· ·Okay.· Did you have an involvement with the
`20· ·decision to file the lawsuits against Alphatec?
`21· · · · ·A.· ·I did.
`22· · · · ·Q.· ·Okay.· Can you tell me about how much
`23· ·NuVasive has spent total in the litigations against
`24· ·Alphatec to date?
`25· · · · ·A.· ·I've been nonmanagement for over a year now.
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`EXHIBIT 12, Page 161 of 189
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`·1· ·So those numbers I'm not familiar with at this point.
`·2· · · · ·Q.· ·You're on the board for NuVasive?
`·3· · · · ·A.· ·I am.
`·4· · · · ·Q.· ·Okay.· And as a board member, are you told
`·5· ·about the litigation spend?
`·6· · · · ·A.· ·We are.
`·7· · · · ·Q.· ·Okay.· And when was the last board meeting
`·8· ·you attended?
`·9· · · · ·A.· ·Last board meeting would have been in
`10· ·November of 2019.
`11· · · · ·Q.· ·Okay.· And what was the litigation spend
`12· ·that was reported to you at that point in time?
`13· · · · ·A.· ·That litigation expense would be a footnote
`14· ·to overall notes that a board gets, and we're spending
`15· ·in the millions of dollars per year.
`16· · · · ·Q.· ·On this -- on the litigations against
`17· ·Alphatec?
`18· · · · ·A.· ·That's correct.
`19· · · · ·Q.· ·Do you know how many are pending right now?
`20· · · · ·A.· ·You just asked me that question.
`21· · · · ·Q.· ·I don't remember your answer.
`22· · · · ·A.· ·And I said I'm not sure the total number of
`23· ·lawsuits.
`24· · · · ·Q.· ·Okay.· Do you remember when the first one
`25· ·was filed?
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`·1· · · · ·Q.· ·-- at this point?
`·2· · · · ·A.· ·I'm a board member.
`·3· · · · ·Q.· ·Okay.· When did you -- actually, tell me
`·4· ·what your -- what your affiliation is with NuVasive for
`·5· ·the record at this --
`·6· · · · ·A.· ·I'm --
`·7· · · · ·Q.· ·-- time.
`·8· · · · ·A.· ·I'm chairman of the board.
`·9· · · · ·Q.· ·Okay.· And how long have you been chairman
`10· ·of the board?
`11· · · · ·A.· ·I've been chairman of the board since
`12· ·December 2018.
`13· · · · ·Q.· ·Okay.· And what was your affiliation with
`14· ·NuVasive before December of 2018?
`15· · · · ·A.· ·I was the chairman and CEO for a period of
`16· ·time prior to that.
`17· · · · ·Q.· ·Okay.· How long -- when did you -- when did
`18· ·you stop in your capacity as CEO for NuVasive?
`19· · · · ·A.· ·That would have been in December of 2018.
`20· · · · ·Q.· ·Was that your decision?
`21· · · · ·A.· ·That was my decision, yes.
`22· · · · ·Q.· ·Why did you make that decision?
`23· · · · ·A.· ·I stepped in as chairman and CEO on an
`24· ·interim basis and was very clear with the board from
`25· ·the beginning that I was not going to remain CEO for an
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`·1· · · · ·A.· ·I don't recall the beginning of the
`·2· ·lawsuits, no.
`·3· · · · ·Q.· ·Okay.· Do you recall the first lawsuit being
`·4· ·filed within days of Mr. Miles leaving Alphatec?
`·5· · · · ·A.· ·I don't recall that.
`·6· · · · ·Q.· ·Okay.· Do you know when the lawsuit was
`·7· ·filed?
`·8· · · · · · · MR. TRIPODI:· I'm going to ask you guys to
`·9· ·slow down because in order for me to object, I'm going
`10· ·to need a short --
`11· ·BY MS. WICKRAMASEKERA:
`12· · · · ·Q.· ·Do you know --
`13· · · · · · · MR. TRIPODI:· -- gap between the question
`14· ·and the answer.· Thank you.
`15· ·BY MS. WICKRAMASEKERA:
`16· · · · ·Q.· ·Do you know when the last lawsuit was filed?
`17· · · · ·A.· ·I don't.
`18· · · · ·Q.· ·Okay.· Are you -- are you still involved
`19· ·with decisions regarding whether to file lawsuits
`20· ·against Alphatec?
`21· · · · ·A.· ·That would be a management decision at this
`22· ·point.
`23· · · · ·Q.· ·Okay.· So you are not involved with that
`24· ·decision at this --
`25· · · · ·A.· ·I am not.
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`·1· ·extended period of time.
`·2· · · · ·Q.· ·And who's the current CEO for NuVasive?
`·3· · · · ·A.· ·His name is Chris Barry.
`·4· · · · ·Q.· ·Okay.· And did -- were you involved with
`·5· ·bringing him on board?
`·6· · · · ·A.· ·I was.
`·7· · · · ·Q.· ·Did you recruit him?
`·8· · · · ·A.· ·I did.
`·9· · · · ·Q.· ·Were there others that you spoke with
`10· ·in -- actually, withdrawn.
`11· · · · · · · Were there other candidates that you looked
`12· ·at potentially hiring as CEO?
`13· · · · ·A.· ·We ran a very exhaustive process in 2018.
`14· · · · ·Q.· ·When did that process start?
`15· · · · ·A.· ·In January of 2018.
`16· · · · ·Q.· ·Chris Barry came from?
`17· · · · ·A.· ·Medtronic.
`18· · · · ·Q.· ·Did you choose the attorneys that are
`19· ·representing you in the various lawsuits?
`20· · · · ·A.· ·I did not.
`21· · · · ·Q.· ·Okay.· Do you know how the firm of Wilson
`22· ·Sonsini was chosen?
`23· · · · · · · MR. TRIPODI:· Objection to the extent it
`24· ·calls for attorney-client privileged information.
`25· · · · · · · You can answer the question yes or no, if
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`·1· ·including Alphatec, and understanding would they be
`·2· ·overlapping our technologies.· So those conversations
`·3· ·would have taken place with me prior to 2017.
`·4· · · · ·Q.· ·Okay.· So then why did you choose to wait
`·5· ·until Pat Miles left NuVasive to sue Alphatec for the
`·6· ·first --
`·7· · · · · · · MR. TRIPODI:· Objection.
`·8· ·BY MS. WICKRAMASEKERA:
`·9· · · · ·Q.· ·-- time?
`10· · · · · · · MR. TRIPODI:· Objection to form.· Calls for
`11· ·attorney-client privilege and/or work product
`12· ·information.
`13· · · · · · · To the extent that you can answer the
`14· ·question without relying on any conversations you had
`15· ·with counsel, you can do so.
`16· · · · · · · THE WITNESS:· The decision to file an
`17· ·intellectual property lawsuit requires lots of inputs
`18· ·to a decision.· One of those inputs factored in is
`19· ·Pat Miles is a talented individual.· Pat Miles has a
`20· ·lot of proprietary information from NuVasive.· And him
`21· ·and his presence at Alphatec changes the dynamic of
`22· ·Alphatec as a competitor.· And so that may be part of
`23· ·the reason that we would ultimately decide to move
`24· ·forward with an intellectual property lawsuit against
`25· ·the company.
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`·1· · · · · · · MR. TRIPODI:· Objection to form.· Vague and
`·2· ·ambiguous.
`·3· · · · · · · THE WITNESS:· When I stepped in as chairman
`·4· ·and CEO, one of the outstanding matters was the
`·5· ·Medtronic NuVasive lawsuit, which centered around
`·6· ·intellectual property.· And I was part of the solution
`·7· ·to bring that to a close.
`·8· ·BY MS. WICKRAMASEKERA:
`·9· · · · ·Q.· ·When did NuVasive first believe that
`10· ·Alphatec was infringing any of its IP?
`11· · · · · · · MR. TRIPODI:· Objection.· Vague and
`12· ·ambiguous.· Calls for speculation.· Also calls for
`13· ·attorney-client privilege and/or work product
`14· ·information.
`15· · · · · · · To the extent that you can answer the
`16· ·question without relying on or referring to
`17· ·conversations with counsel, you can do so.
`18· · · · · · · THE WITNESS:· I don't recall the specific
`19· ·date.
`20· ·BY MS. WICKRAMASEKERA:
`21· · · · ·Q.· ·Now, the first lawsuit that you filed
`22· ·against Alphatec was filed days after Mr. Miles left
`23· ·the company in October 2017; is that right?
`24· · · · ·A.· ·I'd have to verify that with my people, but
`25· ·if that's the case.
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`·1· ·BY MS. WICKRAMASEKERA:
`·2· · · · ·Q.· ·So your -- so if I understand you correctly,
`·3· ·your decision to pursue an intellectual property
`·4· ·lawsuit against Alphatec had to do with Mr. Miles and
`·5· ·his knowledge?
`·6· · · · · · · MR. TRIPODI:· Objection.· Vague --
`·7· · · · · · · THE WITNESS:· Not solely.
`·8· · · · · · · MR. TRIPODI:· Objection.· Vague and
`·9· ·ambiguous.· Calls for speculation.
`10· · · · · · · THE WITNESS:· The answer would be, probably
`11· ·not in and of itself, but it's a factor in the overall
`12· ·decision to file a lawsuit.
`13· ·BY MS. WICKRAMASEKERA:
`14· · · · ·Q.· ·Was it a -- was it a -- was the intent
`15· ·behind the lawsuit to -- to prospectively stop
`16· ·Mr. Miles from -- from taking your intellectual
`17· ·property?
`18· · · · · · · MR. TRIPODI:· Objection to form.· Calls for
`19· ·speculation.
`20· · · · · · · THE WITNESS:· We file intellectual property
`21· ·lawsuits to protect our intellectual property.
`22· ·BY MS. WICKRAMASEKERA:
`23· · · · ·Q.· ·Okay.· Now, you don't have any experience at
`24· ·NuVasive with respect to intellectual property lawsuits
`25· ·against any company other than Alphatec; am I right?
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`·1· · · · ·Q.· ·What were you hoping to achieve by filing
`·2· ·all these lawsuits against Alphatec?
`·3· · · · · · · MR. TRIPODI:· Objection to form.
`·4· · · · · · · THE WITNESS:· The intellectual property
`·5· ·lawsuit was filed to protect our intellectual property.
`·6· ·Corporations should have the right to practice their
`·7· ·intellectual property, which requires substantial
`·8· ·investment, with the protection from the patent office.
`·9· ·And we would file a lawsuit if we believe that a
`10· ·company is overlapping on those patents.
`11· ·BY MS. WICKRAMASEKERA:
`12· · · · ·Q.· ·Did you do anything to investigate whether
`13· ·your patents were valid before you filed the lawsuit
`14· ·against Alphatec?
`15· · · · · · · MR. TRIPODI:· Objection to form.· Calls for
`16· ·attorney-client privilege and/or work product
`17· ·information.
`18· · · · · · · To the extent that you can answer the
`19· ·question without relying on that information, you can
`20· ·do so.
`21· · · · · · · THE WITNESS:· That type of work would be
`22· ·executed by the legal team at NuVasive.
`23· ·BY MS. WICKRAMASEKERA:
`24· · · · ·Q.· ·Okay.· How -- when did the investigation
`25· ·into whether to file the intellect -- the -- the patent
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`·1· ·infringement suit start?
`·2· · · · · · · MR. TRIPODI:· Objection.· Calls for
`·3· ·attorney-client privilege and/or work product
`·4· ·information:· Instruct the witness not to answer.
`·5· ·BY MS. WICKRAMASEKERA:
`·6· · · · ·Q.· ·Do you know how long the prefiling
`·7· ·investigation took --
`·8· · · · · · · MR. TRIPODI:· Same objection.
`·9· ·BY MS. WICKRAMASEKERA:
`10· · · · ·Q.· ·-- for the patent infringement suit?
`11· · · · · · · MR. TRIPODI:· Same objection.· Same
`12· ·instruction.· Instruct you not to answer.
`13· · · · · · · MS. WICKRAMASEKERA:· It's a yes or no.· It's
`14· ·a yes or no.· It's not privileged.
`15· · · · · · · MR. TRIPODI:· It still calls for -- for
`16· ·attorney-client privilege and -- and work product
`17· ·information.
`18· · · · · · · MS. WICKRAMASEKERA:· Really?· Paul, those
`19· ·are dates that would appear on a privilege log.
`20· · · · · · · MR. TRIPODI:· Well, maybe you could
`21· ·rephrase.· I'm not sure that I agree.
`22· ·BY MS. WICKRAMASEKERA:
`23· · · · ·Q.· ·Do you know how long the prefiling
`24· ·investigation regarding the patent infringement suit
`25· ·took?
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`·1· · · · · · · MS. WICKRAMASEKERA:· I don't think that's
`·2· ·privileged.
`·3· · · · · · · MR. TRIPODI:· Well --
`·4· · · · · · · MS. WICKRAMASEKERA:· I'm going to ask the
`·5· ·question again.
`·6· · · · · · · MR. TRIPODI:· Your -- your question is
`·7· ·basically asking him what is NuVasive willing to spend
`·8· ·to enforce --
`·9· · · · · · · MS. WICKRAMASEKERA:· No.
`10· · · · · · · MR. TRIPODI:· -- its rights.
`11· · · · · · · MS. WICKRAMASEKERA:· My question:· Is there
`12· ·a limit?
`13· · · · · · · MR. TRIPODI:· Hold on.· Let me -- let me
`14· ·finish, please.
`15· · · · · · · MS. WICKRAMASEKERA:· Is there a limit?
`16· ·That's a yes or no.
`17· · · · · · · MR. TRIPODI:· Let -- let me --
`18· · · · · · · MS. WICKRAMASEKERA:· Paul, that's a yes or
`19· ·no.
`20· · · · · · · MR. TRIPODI:· Whether there's a limit or not
`21· ·is not information that you're entitled to.· It's
`22· ·NuVasive's litigation strategy, and I'm instructing him
`23· ·not to answer.
`24· · · · · · · MS. WICKRAMASEKERA:· That's a business
`25· ·strategy.
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`·1· · · · ·A.· ·I wouldn't know that specific answer.
`·2· · · · ·Q.· ·Okay.· Whose ultimate decision was it to
`·3· ·file this lawsuit, the patent infringement suit?
`·4· · · · ·A.· ·When we decide to file lawsuits, we take a
`·5· ·lot of inputs into consideration.· We want to make sure
`·6· ·that good analysis was done, that we believe we're in
`·7· ·the right, and that it's the right thing to do in terms
`·8· ·of the use of the company's resources.· And so
`·9· ·ultimately, those are decisions that would be made by
`10· ·myself, the general counsel of the company, the
`11· ·intellectual property leader of the company, based on
`12· ·some work product that they would do accordingly.
`13· · · · ·Q.· ·Now, I believe you testified just a minute
`14· ·ago that NuVasive has spent millions per year on the
`15· ·lawsuits against Alphatec; is that correct?
`16· · · · ·A.· ·My answer, as I recall, was that NuVasive
`17· ·would be spending millions per year on such lawsuits.
`18· · · · ·Q.· ·Is there -- is there an internal limit to
`19· ·what you think these lawsuits should cost?· Was there
`20· ·a -- was there a forecast, a budget put together, some
`21· ·kind of financial analysis that would determine the
`22· ·threshold as to whether to file the lawsuit or not?
`23· · · · · · · MR. TRIPODI:· Objection.· Calls for
`24· ·attorney-client privilege and/or work product
`25· ·information.· Instruct the witness not to answer.
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`·1· · · · · · · MR. TRIPODI:· Well --
`·2· · · · · · · MS. WICKRAMASEKERA:· That's not a litigation
`·3· ·strategy.
`·4· · · · · · · MR. TRIPODI:· I -- I think they're
`·5· ·inextricably intertwined, and I instruct him not to
`·6· ·answer.
`·7· ·BY MS. WICKRAMASEKERA:
`·8· · · · ·Q.· ·Were you aware, Mr. Lucier, when you filed
`·9· ·the patent infringement lawsuit that if it was filed in
`10· ·bad faith, you would have to pay Alphatec's fees in
`11· ·defending the lawsuit?
`12· · · · · · · MR. TRIPODI:· Objection to form.· Lack of
`13· ·foundation.· Calls for speculation.
`14· ·BY MS. WICKRAMASEKERA:
`15· · · · ·Q.· ·You can answer.
`16· · · · ·A.· ·I was not aware of that.
`17· · · · ·Q.· ·So nobody informed you that if there was no
`18· ·basis to this lawsuit and you ultimately lost that you
`19· ·would be on the hook for Alphatec's fees?
`20· · · · · · · MR. TRIPODI:· Objection to the extent it
`21· ·calls for attorney-client privileged information.
`22· · · · · · · If you can answer the question without
`23· ·referring to conversations you may or may not have had
`24· ·with counsel, you can --
`25· · · · · · · THE WITNESS:· When we file a lawsuit --
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`·1· · · · · · · Who did you discuss the potential purchase
`·2· ·of Alphatec after October 2017 with?
`·3· · · · ·A.· ·The idea of acquiring Alphatec would have
`·4· ·been shared with my top management team, which would
`·5· ·include Matt Link, Paul McClintock, Pete Leddy and
`·6· ·others.· The more specifics of the idea I would have
`·7· ·gotten in with Mr. Sean Freeman, head of corporate
`·8· ·development.
`·9· · · · ·Q.· ·Okay.· And when did these discussions occur?
`10· · · · ·A.· ·In terms of -- which time are you referring
`11· ·to?
`12· · · · ·Q.· ·The October 20- -- the -- the -- after
`13· ·Pat Miles left in October 2017.
`14· · · · ·A.· ·And repeat the question.
`15· · · · ·Q.· ·So you said that the idea of acquiring
`16· ·Alphatec would have been shared with your top
`17· ·management team, and you named a number of individuals.
`18· ·And I wanted to know when that occurred.
`19· · · · ·A.· ·And that would have occurred upon Mr. Miles'
`20· ·departure, and then following that there would have
`21· ·been ongoing conversations of is that a good idea or
`22· ·not.
`23· · · · ·Q.· ·How soon after Mr. Miles' departure?
`24· · · · ·A.· ·When Mr. Miles departed, he was quite
`25· ·violent, vociferous, pugnacious in his resignation with
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`Page 100
`·1· ·was on the board.· And then I was also alarmed by the
`·2· ·very words he was using about how aggressive he wanted
`·3· ·to be against NuVasive.· And -- and so I was just
`·4· ·surprised by kind of the overall conversation.
`·5· · · · ·Q.· ·Can you tell me exactly what he said?
`·6· · · · ·A.· ·I can't recall specifically.· As I said, I
`·7· ·paraphrased it.
`·8· · · · ·Q.· ·Well, tell me what words you do remember.
`·9· · · · ·A.· ·He said he was going to kick our ass.· He
`10· ·said he -- that this was his company, NuVasive, and he
`11· ·was going to show me.· And so it was statements like
`12· ·that.
`13· · · · ·Q.· ·And so in response, you -- you thought,
`14· ·Okay.· Well, if you're going to go to Alphatec, then
`15· ·I'm going to purchase Alphatec?· Was that your
`16· ·reaction?
`17· · · · ·A.· ·You know, as -- as CEO of a company, you
`18· ·have responsibility for the overall stewardship of the
`19· ·company.· When somebody of Pat's talent makes those
`20· ·threats to you, you take it very seriously.· And so I
`21· ·stood back and tried to collect my thoughts of all the
`22· ·different things that NuVasive might consider.· And one
`23· ·of the ideas was, Let's relook at Alphatec as an
`24· ·acquisition candidate.
`25· · · · · · · It's -- it's something, as you in your
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`·1· ·me.· It really caught me off-guard.· Shocking,
`·2· ·actually.
`·3· · · · ·Q.· ·Did he hit you?
`·4· · · · ·A.· ·And he called me and basically was shouting
`·5· ·in the phone, saying, This was my company.· I am going
`·6· ·to now -- and I'll bleep the words out -- kick your
`·7· ·butt, and I'm going to show you.· And he made all of
`·8· ·these statements in his resignation.· It was shocking,
`·9· ·and it alarmed me because I didn't understand that was
`10· ·who he was or that was what he felt.
`11· · · · ·Q.· ·Were you scared of him?
`12· · · · ·A.· ·And so I ultimately wrote down a stream of
`13· ·ideas of, Wow, this is pretty serious.· And so one of
`14· ·the ideas was to acquire Alphatec.
`15· · · · ·Q.· ·So were you scared of him when he called you
`16· ·and -- and was screaming at you, in your words?
`17· · · · · · · MR. TRIPODI:· Objection.· Form.
`18· · · · · · · THE WITNESS:· My reaction was one more of
`19· ·alarm than anything.
`20· ·BY MS. WICKRAMASEKERA:
`21· · · · ·Q.· ·What were you scared was going to happen?
`22· · · · ·A.· ·As I said, I was more surprised by the
`23· ·paradox between his demeanor to the board of directors
`24· ·and then his voice on the call is quite different.· And
`25· ·perhaps he had been disingenuous all that time when he
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`Page 101
`·1· ·earlier questions had asked, that we had looked at on
`·2· ·prior occasions.· So we resurfaced it as an idea to
`·3· ·ultimately consider.
`·4· · · · ·Q.· ·Did you -- did you believe that Mr. Miles'
`·5· ·statements to you and what you believe his stated
`·6· ·intent were when he got to Alpha- -- Alphatec -- did
`·7· ·you believe those were improper?
`·8· · · · ·A.· ·As I said, when Mr. Miles called me on
`·9· ·a -- I think it was a Sunday, to resign, I was
`10· ·surprised.· I was alarmed by the language.· That's what
`11· ·I recall remembering.
`12· · · · ·Q.· ·And the language that alarmed you was that
`13· ·he was going to go to Alphatec and kick your -- kick
`14· ·your --
`15· · · · ·A.· ·Just the --
`16· · · · ·Q.· ·-- something.· Is that --
`17· · · · ·A.· ·I was surprised because typically when
`18· ·somebody resigns an executive position, they tend to be
`19· ·more gracious, more thankful for the opportunity,
`20· ·and -- and typically, because people move on in jobs,
`21· ·you wish them the best of luck.· And I was surprised by
`22· ·Mr. Miles not having that approach in that regard.
`23· · · · ·Q.· ·Did you threaten him when you had the
`24· ·conversation with him that day?
`25· · · · ·A.· ·I -- I did not threaten Mr. Miles.· I've
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`Page 102
`·1· ·never threatened Mr. Miles.· In fact, I listened. I
`·2· ·tried to understand.· I said, Why are you leaving?· He
`·3· ·replied, Hey, this has been my company all along.· And
`·4· ·so I just tried to understand the decision, to the best
`·5· ·I could, in that conversation.· But it was a short
`·6· ·conversation because mostly it was a one-sided
`·7· ·conversation.
`·8· · · · ·Q.· ·Did you -- after this conversation, did you
`·9· ·put in writing to anyone what you're telling me here
`10· ·today?
`11· · · · · · · Is there a single e-mail from you to anyone
`12· ·else saying, Pat said this, or is there a single text
`13· ·from you to anyone else saying, Pat said this, before
`14· ·this -- you know, at the time -- around the time that
`15· ·you said it?· Did you -- did you convey that in any
`16· ·kind of documents to anyone?
`17· · · · ·A.· ·Mr. Miles is a formidable executive, and
`18· ·when he resigns, he threatens you, he goes to a
`19· ·competitor, I think it's something as a CEO you need to
`20· ·take very seriously.· And I did.· And so in that same
`21· ·time frame, I took a moment -- I remember earlier the
`22· ·next morning -- to collect just a stream of
`23· ·consciousness of ideas of what just happened.· And it
`24· ·was an e-mail I wrote to my team that we could get
`25· ·together and just discuss.
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`Page 104
`·1· · · · ·Q.· ·Okay.· And what -- what would -- so in this
`·2· ·case, we know that Pat's departure -- Mr. Miles'
`·3· ·departure was what prompted you to want to crush
`·4· ·Alphatec.· What prompted you to want to crush Globus?
`·5· · · · ·A.· ·In that regard, it would probably have been
`·6· ·in regard to their robot development, and we then
`·7· ·launched our robot development.· We were hiring people.
`·8· ·And so I may have said in that instance, Let's develop
`·9· ·a robot that ultimately crushes the Globus robot.
`10· · · · ·Q.· ·Did you talk about locking down surgeons in
`11· ·that same communication regarding -- regarding Globus?
`12· · · · ·A.· ·In that discussion I had with my members of
`13· ·the management team, we wanted to make sure that in a
`14· ·very compliant way that our surgeons knew about our
`15· ·products, knew about our relationship and that we
`16· ·wanted to make sure we solidified them.· And so the
`17· ·language of "lock them down" was just merely doing it
`18· ·in a compliant, professional way, that they stayed with
`19· ·NuVasive.
`20· · · · ·Q.· ·So you've written other e-mails about
`21· ·locking down surgeons unrelated to Alphatec; is that
`22· ·correct?
`23· · · · ·A.· ·I can't recall if I've used that term in
`24· ·other venues, but perhaps.
`25· · · · ·Q.· ·Do you believe that your testimony right now
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`·1· · · · ·Q.· ·Discuss crushing Alphatec?
`·2· · · · ·A.· ·And we discussed the ideas -- a lot of them
`·3· ·didn't have applicability; others had some.· But we
`·4· ·used it as just a formative point of conversation.
`·5· · · · ·Q.· ·To discuss crushing Alphatec?
`·6· · · · ·A.· ·In terms of your word you're using of
`·7· ·"crushing Alphatec," it's a colloquialism I use quite a
`·8· ·lot in a lot of different categories.· For me, when you
`·9· ·say words like that, you're just being colloquial in
`10· ·terms of somebody should be at their very best
`11· ·excellence or, in the case of NuVasive, you should be
`12· ·operating at your best excellence.
`13· · · · ·Q.· ·Can you tell me how many other companies you
`14· ·have used that phrase with in your writings, in your
`15· ·e-mails?
`16· · · · ·A.· ·Every one of them.
`17· · · · ·Q.· ·So you have discussed crushing Medtronic?
`18· · · · ·A.· ·Crush Medtronic, crush Globus.· It's a
`19· ·colloquialism just to get people motivated and let's do
`20· ·our very best.
`21· · · · ·Q.· ·And do you still have those documents,
`22· ·those -- those e-mails that you've written about
`23· ·crushing Globus and crushing Medtronic and crushing
`24· ·other companies?· Do you still have those?
`25· · · · ·A.· ·I don't know.
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`·1· ·sounds credible?
`·2· · · · ·A.· ·I'm telling you what I wrote in that memo.
`·3· · · · ·Q.· ·What memo?
`·4· · · · · · · So it sounds like you're giving me
`·5· ·some -- some pre-budding testimony regarding a memo.
`·6· ·What memo are you referring to?
`·7· · · · · · · MR. TRIPODI:· Objection.· Argumentative.
`·8· · · · · · · THE WITNESS:· As I said before, I -- when
`·9· ·Mr. Miles resigned, I took a moment to collect my
`10· ·thoughts and write down a number of themes I had in my
`11· ·head that then became the basis for just dialogue with
`12· ·my management team, a working dialogue.
`13· ·BY MS. WICKRAMASEKERA:
`14· · · · ·Q.· ·Were you feeling emotional when you wrote
`15· ·that memo that you're referring to?
`16· · · · · · · MR. TRIPODI:· Objection.· Form.
`17· · · · · · · THE WITNESS:· You know, there may have been
`18· ·some emotions.· Like I said before, I was surprised by
`19· ·Mr. Miles' departure.· I was alarmed by his language.
`20· ·But ultimately that settles down and you get back to
`21· ·very, you know, logical, thoughtful things that are
`22· ·important to make sure NuVasive is successful.
`23· ·BY MS. WICKRAMASEKERA:
`24· · · · ·Q.· ·So your discussions regarding purchasing
`25· ·Alphatec were in the context of the crushing Alphatec
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`·1· ·memo that you're referring to?· Is that what you're
`·2· ·telling me?
`·3· · · · ·A.· ·I can't recall if purchasing Alphatec was
`·4· ·part of that dialogue or not.
`·5· · · · ·Q.· ·Well, when did it happen, then?
`·6· · · · ·A.· ·It would have happened in and around the
`·7· ·time that Mr. Miles departed the second time.
`·8· · · · ·Q.· ·Now, immediately after Mr. Miles departed
`·9· ·the second time in October 2017, you had your employees
`10· ·start a war room dedicated to crushing Alphatec; am I
`11· ·correct?
`12· · · · ·A.· ·The company has many war rooms.· We have war
`13· ·rooms when we're looking at acquiring companies; we
`14· ·have war rooms when we're starting new initiatives.
`15· ·It's a common term used to collect a space with
`16· ·documents, with people to meet in order to have a focus
`17· ·over a shorter period of time to make sure that you're
`18· ·looking at something, executing something
`19· ·professionally.
`20· · · · ·Q.· ·Do you have a Medtronic war room?
`21· · · · ·A.· ·As I recall, we had a war room when we were
`22· ·working through the intellectual property settlement
`23· ·with Medtronic.
`24· · · · ·Q.· ·Do you have a DePuy war room?
`25· · · · ·A.· ·I don't recall.· But we, I know, had a war
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`Page 108
`·1· · · · · · · THE WITNESS:· What I meant was let's form a
`·2· ·war room to make sure that we have the collection of
`·3· ·all information to better understand what just happened
`·4· ·with Pat going to Alphatec, what information might Pat
`·5· ·have taken to Alphatec, what surgeons might he have
`·6· ·been talking to prior to leaving NuVasive.
`·7· · · · · · · We just wanted to understand the
`·8· ·implications of that decision by him to go to Alphatec.
`·9· ·And a war room was our place to collect all of our
`10· ·people, our information and have solid conversations.
`11· ·BY MS. WICKRAMASEKERA:
`12· · · · ·Q.· ·So what were the different options?· You
`13· ·told me one option was to purchase Alphatec.· What were
`14· ·the other options you di