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940 F.3d 354
7th Cir.
2019
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Background

  • 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)
Read the full case

Case Details

Case Name: Alejandro Yeatts v. Zimmer Biomet Holdings, Inc.
Court Name: Court of Appeals for the Seventh Circuit
Date Published: Oct 8, 2019
Citations: 940 F.3d 354; 19-1269
Docket Number: 19-1269
Court Abbreviation: 7th Cir.
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    Alejandro Yeatts v. Zimmer Biomet Holdings, Inc., 940 F.3d 354