`Kelli Howell· Highly Confidential
`Case 3:18-cv-00347-CAB-MDD Document 77-2 Filed 06/14/18 PageID.9263 Page 3 of 58
`June 01, 2018
`June 01, 2018
`
`·1· · · · · · · · UNITED STATES DISTRICT COURT
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`·2· · · · · · · SOUTHERN DISTRICT OF CALIFORNIA
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`·3· · · · · · · · · · ·SAN DIEGO DIVISION
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`·4
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`·5· · NUVASIVE, INC., a Delaware
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`· · · corporation,
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`·6
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`· · · · · · · · Plaintiff,
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`·7
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`Page 2
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`·1· · · · · · · · · · · · ·I-N-D-E-X
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`Page 4
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`·2· · WITNESS:· · · · · · · · · · · · · · · · ·EXAMINATION
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`·3· · KELLI HOWELL
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`·4· · MR. TRIPODI II· · · · · · · · · · · · · · · · · · ·6
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`·5· · MS. WICKRAMASEKERA· · · · · · · · · · · · · · · ·214
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`·6
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`·7· · · · · · · · · · · E-X-H-I-B-I-T-S
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`·8· · PLAINTIFF'S· · · · · · · · · · · · · · · · · · ·PAGE
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`·9· · Exhibit 1· · ·Declaration of Kelli Howell in· · · 10
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`· · · · · · · · · · Support of Defendants' Opposition
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`· · · · · · · · vs.· · · · · · · ·Case No. 3:18-CV-00347
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`10· · · · · · · · · to Plaintiff's Motion for
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`·8· · · · · · · · · · · · · · · · · · · · ·-CAB-MDD
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`· · · · · · · · · · Preliminary Injunction
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`· · · ALPHATEC HOLDINGS, INC., a
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`·9· · Delaware corporation and
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`· · · ALPHATEC SPINE, INC., a
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`10· · California corporation,
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`11· · · · · · · Defendants.
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`12· · __________________________________________________
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`13· · · · ·Videotaped deposition of KELLI HOWELL, taken
`
`11
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`· · · Exhibit 1· · ·Declaration of K. Howell· · · · · ·106
`
`12
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`· · · Exhibit 2· · ·Declaration of Matt Link in· · · · 108
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`13· · · · · · · · · Support of Motion for Preliminary
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`· · · · · · · · · · Injunction
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`14
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`· · · Exhibit 3· · ·Document entitled "Exhibit C"· · · 148
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`14· · on behalf of the Plaintiff at 12235 El Camino Real,
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`15
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`15· · Suite 300, San Diego, California, beginning at
`
`· · · Exhibit 4· · ·Document entitled "Form 8K· · · · ·183
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`16· · 9:06 a.m. and ending at 4:30 p.m., on June 1, 2018,
`
`16· · · · · · · · · Alphatec Holdings, Inc."
`
`17· · before PATRICIA Y. SCHULER, Certified Shorthand
`
`17· · Exhibit 6· · ·NuVasive's Notice of Subpoena to· ·204
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`18· · Reporter No. 11949.
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`· · · · · · · · · · Kelli Howell
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`19
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`20
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`21
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`22
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`23
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`24
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`25
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`18
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`19
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`20
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`21
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`22
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`23
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`24
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`25
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`·1· · APPEARANCES OF COUNSEL:
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`·2· · FOR PLAINTIFF:
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`·3· · · · · · · WILSON, SONSINI, GOODRICH & ROSATI
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`·4· · · · · · · BY:· PAUL D. TRIPODI II, ESQ.
`
`·5· · · · · · · BY:· CHRISTINA E. DASHE, ESQ.
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`·6· · · · · · · BY:· SARAH ANN SIEDLAK, eSQ.
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`·7· · · · · · · 12235 El Camino Real
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`·8· · · · · · · Suite 200
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`·9· · · · · · · San Diego California· 92130
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`10· · · · · · · (858) 350-2300
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`11· · · · · · · ptripodi@wsgr.com
`
`12· · FOR DEFENDANT:
`
`13· · · · · · · WINSTON & STRAWN LLP
`
`14· · · · · · · BY:· NIMALKA WICKRAMASEKERA, ESQ.
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`15· · · · · · · BY:· JASON HAMILTON, ESQ.
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`16· · · · · · · 333 S. Grand Avenue
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`17· · · · · · · 38th Floor
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`18· · · · · · · Los Angeles, California· 90071
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`19· · · · · · · (213) 615-1819
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`20· · · · · · · nwickram@winston.com
`
`21· · VIDEOGRAPHER:
`
`22· · · · · · · Huntington Paulson
`
`23· · Also Present:
`
`24· · · · · · · Craig Hunsaker, Alphatec
`
`25· · · · · · · Greg Jackson, NuVasive
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`Page 3
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`Page 5
`·1· · · · SAN DIEGO, CALIFORNIA; FRIDAY, JUNE 1, 2018
`·2· · · · · · · · · · · · ·9:06 a.m.
`·3· · · · · · · THE VIDEOGRAPHER:· Good morning.· We are
`·4· · on the record.· My name is Huntington Paulson with
`·5· · San Diego U.S. Legal Support.· This is the recorded
`·6· · video deposition of Kelli Howell in the matter of
`·7· · NuVasive versus Alphatec Holdings.· The date is
`·8· · June 1st, 2018 at 9:06 a.m.
`·9· · · · · · · Video and audio recording will be taking
`10· · place at all times, unless all counsel agree to go
`11· · off the record.
`12· · · · · · · Would all present today please introduce
`13· · themselves, beginning with the witness.
`14· · · · · · · THE WITNESS:· Kelli Howell.
`15· · · · · · · MS. WICKRAMASEKERA:· Nimalka
`16· · Wickramasekera from Winston & Strawn on behalf of
`17· · Ms. Howell and the Alphatec defendants.· And with
`18· · me is Jason Hamilton and our corporate
`19· · representative Craig Hunsaker.
`20· · · · · · · MR. TRIPODI II:· On behalf of NuVasive,
`21· · Inc., Paul Tripodi of Wilson, Sonsini, Goodrich &
`22· · Rosati.· With me today are Sara Siedlak, Christina
`23· · Dashe, both of Wilson Sonsini, and Greg Jackson on
`24· · behalf of NuVasive, Inc.
`25· · · · · · · THE VIDEOGRAPHER:· The certified court
`
`U.S. Legal Support | www.uslegalsupport.com
`U.S. Legal Support | www.uslegalsupport.com
`Exhibit H
`Page 5
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`2 to 5
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`YVer1f
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`NUVASIVE - EXHIBIT 2036
`Alphatec Holdings Inc. et al. v. NuVasive, Inc. - IPR2019-00362
`
`
`
`Kelli Howell· Highly Confidential
`Kelli Howell· Highly Confidential
`Case 3:18-cv-00347-CAB-MDD Document 77-2 Filed 06/14/18 PageID.9264 Page 4 of 58
`June 01, 2018
`June 01, 2018
`
`Page 6
`·1· · reporter is Patricia Schuler.· Would you please
`·2· · swear in the witness.
`·3· · · · · · · · · · · ·KELLI HOWELL,
`·4· · having been administered an oath, was examined and
`·5· · · · · · · · · ·testified as follows:
`·6
`·7· · · · · · · · · · · · EXAMINATION
`·8· · BY MR. TRIPODI II:
`·9· · · · ·Q.· ·Good morning, Ms. Howell.
`10· · · · ·A.· ·Good morning.
`11· · · · ·Q.· ·Ms. Howell, you understand you are under
`12· · oath today?
`13· · · · ·A.· ·Yes.
`14· · · · ·Q.· ·And is it your understanding also that
`15· · you are represented by counsel today?
`16· · · · ·A.· ·Yes.
`17· · · · ·Q.· ·Who is that?
`18· · · · ·A.· ·Nimalka.
`19· · · · ·Q.· ·Do you recall the first time that you met
`20· · Nimalka Wickramasekera?
`21· · · · ·A.· ·Several years ago, actually.
`22· · · · ·Q.· ·2011 perhaps?
`23· · · · ·A.· ·I don't recall the exact date.
`24· · · · ·Q.· ·Do you recall testifying in trial in
`25· · 2011?
`
`Page 8
`·1· · · · · · · THE WITNESS:· Specifically in response to
`·2· · that declaration?
`·3· · BY MR. TRIPODI II:
`·4· · · · ·Q.· ·Yes.
`·5· · · · ·A.· ·I can't recall the exact date.· A couple
`·6· · weeks ago.
`·7· · · · ·Q.· ·How did you decide what you were going to
`·8· · include in your declaration?
`·9· · · · · · · MS. WICKRAMASEKERA:· I'm going to
`10· · instruct you not to answer that on the basis of
`11· · privilege.
`12· · · · · · · THE WITNESS:· Per the instructions of my
`13· · attorney, I decline to respond to that question.
`14· · BY MR. TRIPODI II:
`15· · · · ·Q.· ·Did you draft the declaration yourself?
`16· · · · ·A.· ·Through conversation with the attorneys,
`17· · we collaborated on -- or I communicated with what
`18· · the message should include.
`19· · · · ·Q.· ·Did you select the exhibits that you
`20· · referenced in your declaration?
`21· · · · ·A.· ·No, I did not.
`22· · · · ·Q.· ·Those were provided to you?
`23· · · · ·A.· ·They were a part of the draft that was
`24· · created that I read and reviewed and agreed to and
`25· · signed off on.
`
`Page 7
`·1· · · · ·A.· ·I do.· I don't recall the exact date, but
`·2· · if that's what you are referring to my interaction
`·3· · with Numaca prior.
`·4· · · · ·Q.· ·Do you recall being cross-examined by her
`·5· · at trial?
`·6· · · · ·A.· ·I recall that happened, yes.
`·7· · · · ·Q.· ·And she is your counsel today?
`·8· · · · ·A.· ·Yes.
`·9· · · · ·Q.· ·Do you find some irony in that?
`10· · · · ·A.· ·Perhaps.
`11· · · · · · · MS. WICKRAMASEKERA:· Do you?
`12· · BY MR. TRIPODI II:
`13· · · · ·Q.· ·So Ms. Howell, what is your understanding
`14· · of the reason that you are here today?
`15· · · · ·A.· ·I suspect that it is because I provided a
`16· · declaration in response to a declaration provided
`17· · by Matt Link.
`18· · · · ·Q.· ·When did you -- were you first contacted
`19· · with respect to the preparation of a declaration in
`20· · connection with the response to the declaration of
`21· · Matt Link?
`22· · · · · · · MS. WICKRAMASEKERA:· I want to caution
`23· · you on privilege not to reveal the substance of any
`24· · communications.· But if you can recall a date, you
`25· · can provide that.
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`Page 9
`
`·1· · · · ·Q.· ·Did you make any changes before you
`·2· · signed it?
`·3· · · · ·A.· ·I did.
`·4· · · · ·Q.· ·Significant changes?
`·5· · · · ·A.· ·No.· More, I would say, tone.
`·6· · · · ·Q.· ·What kind of changes to tone did you
`·7· · make?
`·8· · · · · · · MS. WICKRAMASEKERA:· I'm going to
`·9· · instruct you not to answer on the basis of
`10· · privilege.
`11· · · · · · · THE WITNESS:· Per the advice of my
`12· · attorney, I will decline to answer that question.
`13· · BY MR. TRIPODI II:
`14· · · · ·Q.· ·How long did you spend reviewing the
`15· · declaration before you signed it?
`16· · · · ·A.· ·Probably -- I went back to it more than
`17· · once, so collectively, probably about four hours.
`18· · · · ·Q.· ·On the final pass-through of the
`19· · declaration before you signed, how long did you
`20· · spend with it?
`21· · · · ·A.· ·The final pass --
`22· · · · · · · MS. WICKRAMASEKERA:· Objection; asked and
`23· · answered.
`24· · · · · · · THE WITNESS:· The final pass-through was
`25· · part of that collective review of the document,
`
`U.S. Legal Support | www.uslegalsupport.com
`U.S. Legal Support | www.uslegalsupport.com
`Exhibit H
`Page 6
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`6 to 9
`
`YVer1f
`
`
`
`Kelli Howell· Highly Confidential
`Kelli Howell· Highly Confidential
`Case 3:18-cv-00347-CAB-MDD Document 77-2 Filed 06/14/18 PageID.9265 Page 5 of 58
`June 01, 2018
`June 01, 2018
`
`Page 10
`·1· · making edits, leaving, coming back to it, proofing
`·2· · of my own edits, and then agreeing to sign it.
`·3· · BY MR. TRIPODI II:
`·4· · · · ·Q.· ·Four hours.· Is that your answer?
`·5· · · · ·A.· ·About.
`·6· · · · ·Q.· ·Do you believe your declaration to be
`·7· · truthful?
`·8· · · · ·A.· ·I do.
`·9· · · · ·Q.· ·Do you understand you signed it under
`10· · penalty of perjury?
`11· · · · ·A.· ·I do.
`12· · · · ·Q.· ·Is there anything you would like to
`13· · correct, as you sit here right now?
`14· · · · ·A.· ·No.
`15· · · · · · · (Exhibit 1 was marked for identification.)
`16· · BY MR. TRIPODI II:
`17· · · · ·Q.· ·I would like to mark as Exhibit 1 the
`18· · Declaration of Kelli Howell in Support of
`19· · Defendants' Opposition to Plaintiff's Motion for
`20· · Preliminary Injunction.
`21· · · · · · · MS. WICKRAMASEKERA:· Is this the witness
`22· · copy?
`23· · · · · · · MR. TRIPODI II:· The witness copy is
`24· · here.
`25· · · · · · · THE WITNESS:· Thank you.
`
`Page 12
`·1· · characterization of Alphatec's products as being
`·2· · very similar, strikingly similar, and having
`·3· · similar functionality to NuVasive products."
`·4· · · · · · · Do you see that?
`·5· · · · ·A.· ·I do.
`·6· · · · ·Q.· ·The first statement that appears in
`·7· · paragraph 19 says, "Third, I would also like to
`·8· · clarify Mr. Link's statement that NuVasive makes a
`·9· · significant investment up front to loan or provide
`10· · the hospitals and surgeons with its retractor and
`11· · neuro monitoring systems, and then makes up the
`12· · difference in its initial investment with
`13· · specialized pricing for the implants and other
`14· · disposables, such as the dilators and releasable
`15· · shim."
`16· · · · · · · Is that your statement?
`17· · · · ·A.· ·Yes.
`18· · · · ·Q.· ·And finally, in paragraph 23, it says,
`19· · "Fifth, I disagree with Mr. Link's assertion that
`20· · any specific surgeon-targeting by ex-NuVasive
`21· · personnel now at Alphatec is also likely to result
`22· · in additional irretrievably lost surgeons."
`23· · · · · · · Do you see that?
`24· · · · ·A.· ·I do.
`25· · · · · · · MS. WICKRAMASEKERA:· Actually, objection.
`
`Page 11
`
`·1· · BY MR. TRIPODI II:
`·2· · · · ·Q.· ·Could you briefly describe, Ms. Howell,
`·3· · which -- let me rephrase.
`·4· · · · · · · You took issue in your declaration with
`·5· · five different statements that were made by
`·6· · Mr. Link in his declaration; is that right?
`·7· · · · · · · MS. WICKRAMASEKERA:· Objection.
`·8· · Misstates the document.
`·9· · BY MR. TRIPODI II:
`10· · · · ·Q.· ·First of all, is this your declaration?
`11· · · · ·A.· ·Yes, it is.
`12· · · · ·Q.· ·Okay.
`13· · · · ·A.· ·I don't know if I know by number, but I
`14· · will count.
`15· · · · · · · As itemized, there were five with
`16· · detailed explanation and expounding on each.
`17· · · · ·Q.· ·The first statement appears in paragraph
`18· · six.· It says, "I take issue with Mr. Link's
`19· · statement that Alphatec began to target and hire
`20· · away key members of NuVasive's XLIF team, including
`21· · me."
`22· · · · · · · Do you see that?
`23· · · · ·A.· ·I do.
`24· · · · ·Q.· ·The second statement appears in paragraph
`25· · 12.· It says, "Second, I take issue with Mr. Link's
`
`Page 13
`
`·1· · You skipped the fourth, paragraph 21.
`·2· · · · · · · MR. TRIPODI II:· My apologies.
`·3· · BY MR. TRIPODI II:
`·4· · · · ·Q.· ·Paragraph 21, "Fourth, I would take issue
`·5· · with Mr. Link's statement that Alphatec has the
`·6· · ability to price its lateral products lower than
`·7· · NuVasive's XLIF product."
`·8· · · · · · · Do you see that?
`·9· · · · ·A.· ·I do.
`10· · · · ·Q.· ·And those are the five statements that
`11· · you took issue with?
`12· · · · ·A.· ·Yes.
`13· · · · ·Q.· ·Did you attempt to ascertain or form
`14· · opinions about the accuracy of the remaining
`15· · statements in the Link declaration?
`16· · · · ·A.· ·I remember reading through the
`17· · declaration, and I have made comment to them, but
`18· · did not include them in this.
`19· · · · ·Q.· ·So they didn't rise to the level of
`20· · something you felt you needed to respond to; is
`21· · that right?
`22· · · · ·A.· ·Correct.
`23· · · · ·Q.· ·Let's start with the first statement.
`24· · Actually, I want to backtrack and get some
`25· · background before we dive in.
`
`U.S. Legal Support | www.uslegalsupport.com
`U.S. Legal Support | www.uslegalsupport.com
`Exhibit H
`Page 7
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`10 to 13
`
`YVer1f
`
`
`
`Kelli Howell· Highly Confidential
`Kelli Howell· Highly Confidential
`Case 3:18-cv-00347-CAB-MDD Document 77-2 Filed 06/14/18 PageID.9266 Page 6 of 58
`June 01, 2018
`June 01, 2018
`
`Page 14
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`·1· · · · · · · When did you join NuVasive?
`·2· · · · ·A.· ·In November of 1999.
`·3· · · · ·Q.· ·And when did you meet Mr. Miles?
`·4· · · · ·A.· ·In December of 2000.
`·5· · · · ·Q.· ·When did Mr. Miles become employed by
`·6· · NuVasive?
`·7· · · · · · · MS. WICKRAMASEKERA:· Objection; calls for
`·8· · speculation.
`·9· · · · · · · THE WITNESS:· I believe it was in January
`10· · of 2001.
`11· · BY MR. TRIPODI II:
`12· · · · ·Q.· ·If you would, could you briefly describe
`13· · your role as an employee of NuVasive from the time
`14· · you arrived in 1991 until --
`15· · · · ·A.· ·1999.
`16· · · · ·Q.· ·Excuse me.· 1999.· My mistake.· From 1999
`17· · through September of 2016.
`18· · · · ·A.· ·So I was hired in 1999 as a project
`19· · manager.· I fairly quickly transitioned that
`20· · responsibility from project management to a
`21· · research-specific role, to a manager of clinical
`22· · research and education.· So included surgeon
`23· · education and premarket and post-market research.
`24· · · · · · · Through that role, evolved and was
`25· · promoted into successive titles within the same
`
`Page 16
`
`·1· · BY MR. TRIPODI II:
`·2· · · · ·Q.· ·Did you become aware of it prior to the
`·3· · time that he submitted a resignation to the
`·4· · company?
`·5· · · · ·A.· ·I was not aware that he was going to
`·6· · resign until after he resigned.
`·7· · · · ·Q.· ·Were you aware that he was talking to
`·8· · Alphatec at that point in time?
`·9· · · · ·A.· ·I was not aware that he was talking to
`10· · Alphatec.
`11· · · · ·Q.· ·He is a good friend of yours, right?
`12· · · · ·A.· ·He is.
`13· · · · ·Q.· ·A very good friend of yours, right?
`14· · · · ·A.· ·I would classify that he is a friend
`15· · mine.· He's been a mentor of mine as well for the
`16· · past 17 years.
`17· · · · ·Q.· ·Did you ever travel with him on personal
`18· · trips?
`19· · · · ·A.· ·I have.
`20· · · · ·Q.· ·He's quite a good friend, then?
`21· · · · ·A.· ·He is a good friend.
`22· · · · ·Q.· ·So he did not tell you that he was going
`23· · to resign before he resigned?
`24· · · · ·A.· ·Correct.
`25· · · · ·Q.· ·What was your awareness at that point in
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`Page 15
`·1· · scope as director of research and education, senior
`·2· · director of research, vice president of research
`·3· · and education.· I may not know the exact titles of
`·4· · each of those, but successively through vice
`·5· · president, most recently vice president of
`·6· · clinical -- vice president of research and health
`·7· · informatics was my last title.
`·8· · · · ·Q.· ·Over that period of time, you became very
`·9· · familiar with NuVasive's products and procedures,
`10· · correct?
`11· · · · ·A.· ·Yes.
`12· · · · ·Q.· ·Were you aware that in September of 2016,
`13· · Mr. Miles announced that he was going to leave
`14· · NuVasive to join a company called Alphatec?
`15· · · · ·A.· ·I don't remember the exact date, but I do
`16· · recall the event.
`17· · · · ·Q.· ·How did you become aware of it?
`18· · · · ·A.· ·I'm trying to recall.· I don't recall how
`19· · I became aware of it.· It became public knowledge.
`20· · · · ·Q.· ·Did Mr. Miles tell you about it?
`21· · · · · · · MS. WICKRAMASEKERA:· Objection; asked and
`22· · answered.
`23· · · · · · · THE WITNESS:· It is possible.· I don't
`24· · recall exactly how I became aware of it at the
`25· · time, but ultimately was aware of it, yes.
`
`Page 17
`·1· · time of the Alphatec product line, September 2016,
`·2· · roughly the time of Mr. Miles' initial attempt to
`·3· · depart for Alphatec?
`·4· · · · ·A.· ·I was not intimately aware of Alphatec's
`·5· · product line per se.· I was not familiar with what
`·6· · kinds of devices they had for different procedures.
`·7· · I was aware of them as a competitor in the space,
`·8· · but not familiar with their product line and their
`·9· · product portfolio.
`10· · · · ·Q.· ·When you say "competitor in the space,"
`11· · what do you mean by that?
`12· · · · ·A.· ·That they are another spine, medical
`13· · medical device company.
`14· · · · ·Q.· ·Lateral spine company?
`15· · · · ·A.· ·Not specifically, no.
`16· · · · ·Q.· ·Did they have a lateral solution at that
`17· · point in time, September 2016?
`18· · · · ·A.· ·I was not aware of one in September of
`19· · 2016.
`20· · · · ·Q.· ·Was it your job to know if there was a
`21· · competitive lateral offering?
`22· · · · ·A.· ·No.
`23· · · · ·Q.· ·No.
`24· · · · · · · Was it your job to understand the
`25· · offerings of other companies in the lateral space
`
`U.S. Legal Support | www.uslegalsupport.com
`U.S. Legal Support | www.uslegalsupport.com
`Exhibit H
`Page 8
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`14 to 17
`
`YVer1f
`
`
`
`Kelli Howell· Highly Confidential
`Kelli Howell· Highly Confidential
`Case 3:18-cv-00347-CAB-MDD Document 77-2 Filed 06/14/18 PageID.9267 Page 7 of 58
`June 01, 2018
`June 01, 2018
`
`Page 18
`
`·1· · at that point in time?
`·2· · · · ·A.· ·Not specifically, no.
`·3· · · · ·Q.· ·Did you ever prepare competitive
`·4· · assessments of other companies at or around that
`·5· · period of time?
`·6· · · · ·A.· ·My responsibilities would have included
`·7· · comparisons mostly out of the published literature.
`·8· · So not specifically head-to-head marketing
`·9· · comparisons.· That would be a role of the marketing
`10· · person.
`11· · · · ·Q.· ·So if it appeared in the literature, you
`12· · would likely know about it?
`13· · · · ·A.· ·Probably.
`14· · · · ·Q.· ·Do you recall -- were you involved at all
`15· · in an investigation known as Project Titan at
`16· · NuVasive?
`17· · · · ·A.· ·I don't recognize that name.
`18· · · · ·Q.· ·Were you aware at all of a potential
`19· · investment opportunity that was provided by UBS
`20· · Financial to NuVasive for -- to make an investment
`21· · in Alphatec?
`22· · · · ·A.· ·I was not.
`23· · · · ·Q.· ·You were not aware of that at any time?
`24· · · · · · · MS. WICKRAMASEKERA:· I will caution you
`25· · regarding privilege.· But outside the context of
`
`Page 20
`·1· · Globus had purchased Alphatec's international
`·2· · business?
`·3· · · · ·A.· ·I was.
`·4· · · · ·Q.· ·When did you become aware of that?
`·5· · · · ·A.· ·Probably right around the time that it
`·6· · happened.· It was industry news at the time.
`·7· · · · ·Q.· ·September 2016, roughly?
`·8· · · · ·A.· ·I'm not familiar with the dates, so I
`·9· · don't recall the dates, but if that is when it
`10· · happened and it was publicly announced, that is
`11· · when I would have been aware of it.
`12· · · · ·Q.· ·Sound about right timing-wise?
`13· · · · ·A.· ·About right.
`14· · · · ·Q.· ·What was your understanding of Alphatec's
`15· · business or the nature of its spine-related
`16· · business as of September 2016, roughly the time of
`17· · Pat's first attempt at a departure and roughly
`18· · about the time I will represent to you of the
`19· · Globus acquisition of the international business?
`20· · · · · · · MS. WICKRAMASEKERA:· Objection; vague.
`21· · · · · · · THE WITNESS:· What was my impression of
`22· · it?
`23· · BY MR. TRIPODI II:
`24· · · · ·Q.· ·Your understanding.· What did they sell?
`25· · · · ·A.· ·I did not have, again, a detailed
`
`Page 19
`·1· · communications with attorneys, you can answer the
`·2· · question.
`·3· · · · · · · THE WITNESS:· I don't recognize the names
`·4· · of the parties that you are referring to.
`·5· · BY MR. TRIPODI II:
`·6· · · · ·Q.· ·When did you first become aware that
`·7· · Alphatec had a commercially available lateral
`·8· · solution?
`·9· · · · ·A.· ·I can't recall exactly.· I may have been
`10· · aware that they had an implant for use in lateral
`11· · surgeries within the year leading up to NAS of
`12· · 2017, in the same way that most spine companies
`13· · have a lateral implant for use in a lateral
`14· · procedure.· I think the first time I saw that they
`15· · had a system for lateral was at NAS of 2017.
`16· · · · ·Q.· ·And when was NAS in 2017?
`17· · · · ·A.· ·I believe it was in October.
`18· · · · ·Q.· ·So your first awareness, then, of a
`19· · lateral offering by Alphatec would have been in
`20· · October of 2017?
`21· · · · ·A.· ·Roughly.· It was not something that I had
`22· · in front of mind that I was concerned about a
`23· · product offering from Alphatec in the new lateral
`24· · space.
`25· · · · ·Q.· ·Were you aware at any point in time that
`
`Page 21
`·1· · understanding of what their product line was, but
`·2· · knowing that they were a competitor in the spinal
`·3· · device space.· And I had presumptions about what
`·4· · they had in terms of pedicle screws and interbody
`·5· · implants, but was not specifically aware of
`·6· · flagship products or highly competitive devices at
`·7· · the time.
`·8· · · · ·Q.· ·Were you surprised that Pat Miles wanted
`·9· · to go to Alphatec in September of 2016?
`10· · · · ·A.· ·I was surprised.
`11· · · · ·Q.· ·Why?
`12· · · · ·A.· ·Because, leading up to that time,
`13· · Alphatec did not have a very good reputation in the
`14· · space.· Again, products that were not very
`15· · competitive enough to pay attention to, they had a
`16· · negative reputation in the space for business
`17· · practices, for their sales structure.
`18· · · · · · · I understood that they were having
`19· · financial difficulties and were at the verge of
`20· · bankruptcy when they sold their international
`21· · business to Globus.· It was a company in hardship.
`22· · · · ·Q.· ·Did you talk to Mr. Miles about that?
`23· · · · ·A.· ·At some point prior to that, we had
`24· · talked about the problems facing Alphatec, yes.
`25· · · · ·Q.· ·What did you talk about specifically?
`
`U.S. Legal Support | www.uslegalsupport.com
`U.S. Legal Support | www.uslegalsupport.com
`Exhibit H
`Page 9
`
`18 to 21
`
`YVer1f
`
`
`
`Kelli Howell· Highly Confidential
`Kelli Howell· Highly Confidential
`Case 3:18-cv-00347-CAB-MDD Document 77-2 Filed 06/14/18 PageID.9268 Page 8 of 58
`June 01, 2018
`June 01, 2018
`
`Page 22
`·1· · · · ·A.· ·We talked about the fact that they --
`·2· · there were some prior NuVasive share owners who had
`·3· · left to work at Alphatec.· We lamented their future
`·4· · at the time.· We discussed the hardships that they
`·5· · were facing with respect to going bankrupt, but
`·6· · also speculated whether it could be a company that
`·7· · could be turned around.
`·8· · · · ·Q.· ·Why were you speculating about that?
`·9· · · · ·A.· ·Thinking about other opportunities.
`10· · · · ·Q.· ·What does that mean?
`11· · · · ·A.· ·At the time, personally, I was losing
`12· · confidence in my position at NuVasive and the
`13· · direction of the company, feeling frustrated by the
`14· · changes that were happening at the time,
`15· · considering what my next options might be.
`16· · · · ·Q.· ·And Alphatec was one of the options that
`17· · you were speculating about at that time?
`18· · · · ·A.· ·Among other things in the space, Alphatec
`19· · was one of them.
`20· · · · ·Q.· ·What other things?
`21· · · · ·A.· ·Well, in general, what other spinal
`22· · device opportunities might there be, or even
`23· · contemplating working outside of the spine device
`24· · area.
`25· · · · ·Q.· ·Could you be more specific?
`
`Page 24
`
`·1· · what it once was.
`·2· · · · ·Q.· ·Did you envision yourself being part of
`·3· · that leadership change around that time,
`·4· · September 2016?
`·5· · · · ·A.· ·I don't know if I would agree to the
`·6· · language of being part of a leadership change.· As
`·7· · part of the leadership, I was concerned about some
`·8· · of the change.· I was perhaps too vocal about some
`·9· · of the change.
`10· · · · ·Q.· ·Did you have aspirations to be a bigger
`11· · part of leadership at NuVasive?
`12· · · · ·A.· ·I did.
`13· · · · ·Q.· ·In what capacity?
`14· · · · ·A.· ·My role at the time was as a vice
`15· · president, and there was a senior leadership team
`16· · that was primarily executive vice presidents or
`17· · senior vice presidents who had the operational
`18· · mechanisms to meet and make decisions that even the
`19· · next level of executives were not privy to.
`20· · · · · · · And so the opportunity to be part of the
`21· · senior leadership team where it appeared that more
`22· · of the decision-making was being made was what I
`23· · aspired to.
`24· · · · ·Q.· ·Is that the global executive committee?
`25· · · · ·A.· ·That may be what it is called now.
`
`Page 23
`
`·1· · · · ·A.· ·No, I don't know that I could.· In
`·2· · general, what are other companies doing?· What gaps
`·3· · in clinical solutions are there?· Is there
`·4· · opportunity in or outside of the space to do
`·5· · something new, to find solutions to meet unmet
`·6· · clinical needs?· Just daydreaming, essentially, of
`·7· · what else -- what the next step might be for me
`·8· · professionally.
`·9· · · · ·Q.· ·And these were things that you discussed
`10· · with Mr. Miles?
`11· · · · ·A.· ·Some.· Some.· As my supervisor and also a
`12· · friend and mentor, we had conversations about my
`13· · professional development for sure.
`14· · · · ·Q.· ·What advice did Mr. Miles have for you at
`15· · time point in time?
`16· · · · ·A.· ·In that time leading up to that time
`17· · frame of around September of 2016, the
`18· · conversations that he and I were having were more
`19· · about how do we fix the problems that we perceive
`20· · to be happening at NuVasive, how do we see a path
`21· · forward there.· Keeping nose to the grindstone,
`22· · essentially.
`23· · · · · · · There was an expectation of leadership
`24· · change and regaining control of the company.· We
`25· · were both still hopeful that we could make NuVasive
`
`Page 25
`
`·1· · · · ·Q.· ·Does that sound right?
`·2· · · · ·A.· ·That sounds about right.
`·3· · · · ·Q.· ·Were you eventually elevated to the goal
`·4· · of executive committee?
`·5· · · · ·A.· ·No, I was not.
`·6· · · · ·Q.· ·Why not?
`·7· · · · ·A.· ·You will have to ask them.
`·8· · · · ·Q.· ·When did you find out that you were not
`·9· · going to be elevated to the global executive
`10· · committee?
`11· · · · ·A.· ·Well, I presumed that that was not at
`12· · least immediately impending when, after Pat had
`13· · left, I was reporting to his successor.· And then
`14· · he left close to a year later.· And at that point,
`15· · there was a change in that senior leadership team
`16· · that did not include me.
`17· · · · ·Q.· ·And that was in the fall of 2017?
`18· · · · ·A.· ·That was in summer, I believe, of 2017.
`19· · · · ·Q.· ·Now, you said that you had some
`20· · discussions with Mr. Miles prior to the
`21· · announcement of his departure in the nature of his
`22· · mentoring of you and your concerns and interest in
`23· · perhaps exploring other opportunities.
`24· · · · · · · Is that a fair characterization?
`25· · · · ·A.· ·Yes.
`
`U.S. Legal Support | www.uslegalsupport.com
`U.S. Legal Support | www.uslegalsupport.com
`Exhibit H
`Page 10
`
`22 to 25
`
`YVer1f
`
`
`
`Kelli Howell· Highly Confidential
`Kelli Howell· Highly Confidential
`Case 3:18-cv-00347-CAB-MDD Document 77-2 Filed 06/14/18 PageID.9269 Page 9 of 58
`June 01, 2018
`June 01, 2018
`
`Page 26
`·1· · · · ·Q.· ·And that you were surprised when he
`·2· · announced in September or 2016 that he was
`·3· · intending to leave for Alphatec, correct?
`·4· · · · ·A.· ·I would say that I was not surprised that
`·5· · he was intending to leave.· I was surprised that he
`·6· · was intending to go to Alphatec.
`·7· · · · ·Q.· ·Did you feel betrayed that, after
`·8· · mentoring you to stay and work on the problem, that
`·9· · Mr. Miles was trying to leave to go join Alphatec?
`10· · · · ·A.· ·No, I did not.
`11· · · · · · · MS. WICKRAMASEKERA:· Objection; vague.
`12· · BY MR. TRIPODI II:
`13· · · · ·Q.· ·Did you consider going at that point in
`14· · time?
`15· · · · ·A.· ·No, not seriously.
`16· · · · ·Q.· ·What changed your mind?
`17· · · · ·A.· ·Continued devolution of what I perceived
`18· · to be the culture of the company and my role in it,
`19· · my ability to influence, changes in positions in
`20· · terms of responsibility, relinquishing of some of
`21· · my own responsibilities, feeling marginalized at
`22· · the company.
`23· · · · ·Q.· ·When did you first consider leaving
`24· · NuVasive to join Alphatec?
`25· · · · ·A.· ·I did not consider leaving NuVasive to
`
`Page 28
`
`·1· · BY MR. TRIPODI II:
`·2· · · · ·Q.· ·You said you would only have considered
`·3· · going to Alphatec after Pat was -- Pat Miles was in
`·4· · a leadership position there.
`·5· · · · · · · When did that ultimately occur?
`·6· · · · · · · MS. WICKRAMASEKERA:· Go ahead.
`·7· · · · · · · THE WITNESS:· So is the question when did
`·8· · Pat assume a leadership position at Alphatec?
`·9· · BY MR. TRIPODI II:
`10· · · · ·Q.· ·Alphatec, correct.
`11· · · · ·A.· ·My understanding was that that was in the
`12· · fall of 2017.
`13· · · · ·Q.· ·When did you find out about that move?
`14· · · · ·A.· ·Within a day or two of him resigning from
`15· · NuVasive.
`16· · · · ·Q.· ·Did he talk to you about it beforehand?
`17· · · · ·A.· ·No.
`18· · · · ·Q.· ·Did he talk to you about it afterward?
`19· · · · ·A.· ·Yes.
`20· · · · ·Q.· ·What did he tell you?
`21· · · · ·A.· ·He called me after resigning the second
`22· · time from NuVasive in the fall of 2017.· He called
`23· · me to want to tell me that he left NuVasive so that
`24· · I would hear it from him personally.
`25· · · · ·Q.· ·What else did he say?
`
`Page 27
`·1· · join Alphatec.· I considered leaving NuVasive to
`·2· · pursue potential opportunities, among which
`·3· · included Alphatec.
`·4· · · · ·Q.· ·Nevertheless, Alphatec was one of the
`·5· · options that you were considering.· When did you
`·6· · first consider Alphatec?· It had to be after
`·7· · September of 2016, right?
`·8· · · · · · · MS. WICKRAMASEKERA:· Objection.· Vague;
`·9· · compound.
`10· · · · · · · THE WITNESS:· Yes.· I would have only
`11· · considered going to Alphatec after Pat was in a
`12· · leadership position there.
`13· · BY MR. TRIPODI II:
`14· · · · ·Q.· ·And would you agree that, at least prior
`15· · to -- or on or about the time that we have been
`16· · talking about in 2016, that Alphatec had an aged
`17· · undifferentiated portfolio of spine products?
`18· · · · · · · MS. WICKRAMASEKERA:· Objection; vague.
`19· · · · · · · THE WITNESS:· Again, I was unfamiliar
`20· · with their product line.· They were not competitive
`21· · in the space.· So could that be a characterization
`22· · of their product line and the reason why they were
`23· · not competitive in the space?· Perhaps.· But I
`24· · can't say specifically because I was unfamiliar
`25· · with exactly what they had.
`
`Page 29
`·1· · · · ·A.· ·I don't recall exactly.· It was the
`·2· · sentiment of essentially being tired of being on
`·3· · the sidelines and looking for a way to again be
`·4· · useful within the industry.
`·5· · · · ·Q.· ·So that would have been on or about
`·6· · October 1st of 2017.· Does that sound about right?
`·7· · · · ·A.· ·Roughly.· I don't remember the exact
`·8· · date, but that sounds about right.
`·9· · · · ·Q.· ·And I believe that you said NAS was in
`10· · October of 2017; is that right?
`11· · · · ·A.· ·I believe so.· Either late October, maybe
`12· · early November 2017.
`13· · · · ·Q.· ·And that was the first time that you had
`14· · seen Alphatec's lateral offering was at NAS in
`15· · 2017?
`16· · · · ·A.· ·They had -- y