HDL’s signage has been removed from its Fifth Street facility. Photo by Katie Demeria.
Less than two months after buying lawsuit-plagued Health Diagnostic Laboratory, the local lab company’s new owner has been hit with some legal issues of its own.
True Health Diagnostics, the Texas firm that bought downtown-based HDL out of bankruptcy in September, is being sued for patent infringement related to its alleged use of a certain type of blood test aimed at detecting risks for heart disease.
Cleveland HeartLab and the affiliated Cleveland Clinic Foundation filed the suit Nov. 12 in Ohio federal court, accusing True Health of infringing on several of its patents for myeloperoxidase or MPO tests. The Cleveland Clinic Foundation controls the patented processes, and Cleveland HeartLab has exclusive licenses to use them. The tests, unlike common cholesterol tests, analyze inflammation of the blood vessels.
The lawsuit focuses in part on the history between HDL and Cleveland HeartLab. The two were competitors, and CHL considered purchasing HDL in the same bankruptcy court-approved auction that True Health ultimately won.
HDL also had an agreement to use CHL’s MPO tests. True Health had the option to continue that agreement when it purchased HDL on Sept. 29, but chose not to do so, the lawsuit claims.
According to the suit, True Health CEO Chris Grottenthaler approached Cleveland and expressed interest in using its MPO tests last year, shortly after he formed True Health.
“During discussions in May and June of 2014, True Health acknowledged that Cleveland HeartLab is the source of the patented MPO testing and that, as a CVD (cardiovascular disease) lab, True Health desired access to these tests,” court records state. “These talks, however, were unavailing.”
CHL alleges that despite discontinuing its arrangement with HDL, True Health has been conducting MPO tests of its own. The suit states that the Ohio firm obtained lab results dated Oct. 5 on True Health letterhead showing an MPO test result and another dated Oct. 19.
True Health screens blood samples for disease and other potential health problems. Image courtesy of True Health.
Before True Health closed on the HDL buy, Cleveland HeartLab CEO Jake Orville sent an email to Grottenthaler, dated Sept. 14 of this year, warning him that Cleveland has several patents protecting its MPO tests. In the email, which is included in court documents, Orville stated that while doing due diligence after expressing interest in purchasing HDL, the Ohio company learned that HDL had developed “their own homebrew MPO tests.”
“We understand you intend on rejecting our contract as part of the conclusion on your asset purchase (of HDL), however please be advised that although the terms of our agreement may be rejected, our intellectual property rights are not something that can be rejected in a bankruptcy or 363 asset sale process,” the email reads.
In its suit, Cleveland alleges three counts of patent infringement, as well as a request for a restraining order against True Health preventing it from the continued use of MPO tests.
The initial restraining order request was denied by an Ohio federal judge. True Health objected to the restraining order, claiming that CHL’s suit was “filed to avoid legitimate competition.”
The objection states that HDL had been one of Cleveland’s chief competitors. It claims that Cleveland’s failed attempt to purchase HDL left it disappointed and it has “taken out its disappointment through this lawsuit.”
In a prepared statement, Grottenthaler says True Health “feels Cleveland HeartLab’s actions are misdirected.”
“We are disappointed that Cleveland HeartLab has chosen to file this action against a company dedicated to providing physicians with medically necessary diagnostic information that can help improve patient outcomes,” the statement says.
True Health is represented in the case by Kerri Keller and David Sporar of Ohio-based law firm Brouse McDowell. True Health has not yet filed a response to Cleveland’s lawsuit.
Cleveland is represented in the case by Todd Tucker of Cleveland-based Calfee, Halter & Griswold.
Tucker, in an email, said he would not comment on pending litigation.
CHL has successfully defended the validity of at least one of its patents in front of the patent and trademark office previously, most recently in 2011.
HDL’s signage has been removed from its Fifth Street facility. Photo by Katie Demeria.
Less than two months after buying lawsuit-plagued Health Diagnostic Laboratory, the local lab company’s new owner has been hit with some legal issues of its own.
True Health Diagnostics, the Texas firm that bought downtown-based HDL out of bankruptcy in September, is being sued for patent infringement related to its alleged use of a certain type of blood test aimed at detecting risks for heart disease.
Cleveland HeartLab and the affiliated Cleveland Clinic Foundation filed the suit Nov. 12 in Ohio federal court, accusing True Health of infringing on several of its patents for myeloperoxidase or MPO tests. The Cleveland Clinic Foundation controls the patented processes, and Cleveland HeartLab has exclusive licenses to use them. The tests, unlike common cholesterol tests, analyze inflammation of the blood vessels.
The lawsuit focuses in part on the history between HDL and Cleveland HeartLab. The two were competitors, and CHL considered purchasing HDL in the same bankruptcy court-approved auction that True Health ultimately won.
HDL also had an agreement to use CHL’s MPO tests. True Health had the option to continue that agreement when it purchased HDL on Sept. 29, but chose not to do so, the lawsuit claims.
According to the suit, True Health CEO Chris Grottenthaler approached Cleveland and expressed interest in using its MPO tests last year, shortly after he formed True Health.
“During discussions in May and June of 2014, True Health acknowledged that Cleveland HeartLab is the source of the patented MPO testing and that, as a CVD (cardiovascular disease) lab, True Health desired access to these tests,” court records state. “These talks, however, were unavailing.”
CHL alleges that despite discontinuing its arrangement with HDL, True Health has been conducting MPO tests of its own. The suit states that the Ohio firm obtained lab results dated Oct. 5 on True Health letterhead showing an MPO test result and another dated Oct. 19.
True Health screens blood samples for disease and other potential health problems. Image courtesy of True Health.
Before True Health closed on the HDL buy, Cleveland HeartLab CEO Jake Orville sent an email to Grottenthaler, dated Sept. 14 of this year, warning him that Cleveland has several patents protecting its MPO tests. In the email, which is included in court documents, Orville stated that while doing due diligence after expressing interest in purchasing HDL, the Ohio company learned that HDL had developed “their own homebrew MPO tests.”
“We understand you intend on rejecting our contract as part of the conclusion on your asset purchase (of HDL), however please be advised that although the terms of our agreement may be rejected, our intellectual property rights are not something that can be rejected in a bankruptcy or 363 asset sale process,” the email reads.
In its suit, Cleveland alleges three counts of patent infringement, as well as a request for a restraining order against True Health preventing it from the continued use of MPO tests.
The initial restraining order request was denied by an Ohio federal judge. True Health objected to the restraining order, claiming that CHL’s suit was “filed to avoid legitimate competition.”
The objection states that HDL had been one of Cleveland’s chief competitors. It claims that Cleveland’s failed attempt to purchase HDL left it disappointed and it has “taken out its disappointment through this lawsuit.”
In a prepared statement, Grottenthaler says True Health “feels Cleveland HeartLab’s actions are misdirected.”
“We are disappointed that Cleveland HeartLab has chosen to file this action against a company dedicated to providing physicians with medically necessary diagnostic information that can help improve patient outcomes,” the statement says.
True Health is represented in the case by Kerri Keller and David Sporar of Ohio-based law firm Brouse McDowell. True Health has not yet filed a response to Cleveland’s lawsuit.
Cleveland is represented in the case by Todd Tucker of Cleveland-based Calfee, Halter & Griswold.
Tucker, in an email, said he would not comment on pending litigation.
CHL has successfully defended the validity of at least one of its patents in front of the patent and trademark office previously, most recently in 2011.