940 F.3d 354
7th Cir.2019Background
- Alejandro Yeatts was Biomet Argentina’s Business Manager for South America (2008–2014); he communicated with Brazilian distributor Sergio Galindo, who had bribed doctors.
- Biomet terminated its distribution relationship with Galindo’s firm after learning of bribery; DOJ investigated Biomet for FCPA violations, leading to a 2012 Deferred Prosecution Agreement requiring an independent monitor.
- Biomet suspended Yeatts in April 2014 and terminated him in 2015 amid the company’s internal and DOJ inquiries into Brazil operations.
- In October 2014 Biomet circulated a Restricted Parties List (RPL) to employees and partners in Latin America listing Yeatts as included per the ‘Brazil Investigation’ and noting he was ‘suspended in connection with corruption-related investigation involving Biomet Brazil.’
- Yeatts sued for defamation (filed 2016), alleging the RPL implied he engaged in criminal or other misconduct; the district court granted summary judgment for Biomet, and the Seventh Circuit affirmed.
Issues
| Issue | Yeatts' Argument | Biomet's Argument | Held |
|---|---|---|---|
| Whether the RPL statement that Yeatts ‘‘poses a significant and unacceptable compliance risk’’ is defamatory | The statement implies objectively verifiable misconduct and is thus a false factual imputation | It is a non-actionable opinion about risk that cannot be proven false | Not defamatory — statement is opinion and not provable false; nonactionable |
| Whether the RPL statement that Yeatts was ‘‘suspended in connection with [a] corruption-related investigation’’ is defamatory | The suspension’s implication of wrongdoing is defamatory | The statement of suspension is true; truth is a complete defense | Not defamatory — the suspension statement is true and therefore not actionable |
| Whether malice or privilege saves Yeatts’ claim | Yeatts contends Biomet acted with malice and privileges do not apply | Biomet argued lack of malice and asserted qualified/public-interest privileges | Court did not need to decide privileges or malice because no defamatory imputation; affirmed on non-defamatory grounds |
Key Cases Cited
- Milkovich v. Lorain Journal Co., 497 U.S. 1 (1990) (distinguishes protected opinion from verifiable factual assertions)
- Sullivan v. Conway, 157 F.3d 1092 (7th Cir. 1998) (statements like ‘very poor lawyer’ are nonactionable opinion)
- Celotex Corp. v. Catrett, 477 U.S. 317 (1986) (summary judgment burden and standard)
- Kelley v. Tanoos, 865 N.E.2d 593 (Ind. 2007) (elements of defamation under Indiana law)
- Meyer v. Beta Tau House Corp., 31 N.E.3d 501 (Ind. Ct. App. 2015) (distinguishing opinion from objectively verifiable fact)
- Baker v. Tremco Inc., 917 N.E.2d 650 (Ind. 2009) (definition and harm standard for defamatory communications)
- Evans v. Portfolio Recovery Assocs., LLC, 889 F.3d 337 (7th Cir. 2018) (standard of review for summary judgment)
- West v. J. Greg Allen Builder, Inc., 92 N.E.3d 634 (Ind. Ct. App. 2017) (truth as a complete defense to defamation)
- Wynn v. Chanos, 75 F. Supp. 3d 1228 (N.D. Cal. 2014) (company statements about compliance/investment risk can be nonactionable opinion)
