LOS ANGELES--(BUSINESS WIRE)--Henry Schein, Inc. (NASDAQ: HSIC) was hit with a series of lawsuits filed by Gerard Fox Law P.C. today alleging the dental supply giant is jeopardizing the public’s health, trust and the integrity of our water supply through deceptive and underhanded business practices.
The three complaints allege that the company and its top executives maliciously misrepresented their intentions when they induced former business partner Ken Rosenblood to bring them into a deal to buy two health compliance companies with which they were actually competing; not to grow them, not to improve compliance, but to bury them in order to protect their existing profit centers that put patient health and safety at needless risk.
The majority of dental offices are non-compliant with CDC regulations and OSHA standards for infection control, according to a recent study published in the Journal of the American Dental Association. From improper sterilization of instruments, to re-using equipment that is intended for single use only, dental offices can be a serious health threat to patients and dental workers, spreading severe illness such as Hepatitis A, B, and C and antibiotic resistant staph infections that can lead to pneumonia, sepsis or other potentially life-threatening infections.
Rosenblood, through his companies, committed himself to making infection control compliance easy for dentists and their practices safe for patients.
These lawsuits allege that Henry Schein wanted nothing to do with improved safety and compliance solutions because they disrupt and threaten the profits of its existing business model.
The complaints allege that Ken Rosenblood discovered, after joining forces with Henry Schein, Inc., that Henry Schein’s business interests are often completely opposed to the product lines they purchased with Rosenblood and that were developed by Rosenblood. The complaints allege Henry Schein did not want to expose their customers to Ken Rosenblood’s cutting edge compliance technology, because Schein offered competing products of lower quality that they were more interested in selling. The complaints allege that Schein would not put Rosenblood’s innovative products in their catalogue because they conflict with its other purposes.
Because of Henry Schein’s actions, the complaints allege how potentially the public health, the public trust, public well-being and integrity of our water supply are in jeopardy because the dental supply giant tried to keep information from the public.
Henry Schein is a major seller of Dental Amalgam, which is sold in the U.S. as “silver fillings.” Amalgam fillings are mostly mercury, a known potent neurotoxin. The environmental health effects of Amalgam include brain damage and neurological problems, especially for children and the unborn babies of pregnant women. Dental Amalgam emits mercury vapor after it is implanted in the mouth, and this mercury bio-accumulates and endangers the health of millions.
While Rosenblood was working hard developing an Amalgam waste disposal system and positioning the Henry Schein subsidiaries to be at the forefront of providing services that allowed practitioners to comply with new EPA requirements to protect the environment, the complaints allege that Henry Schein was actively working against the interest of those companies – steadfastly working to minimize disclosure of Amalgam health risks to the public, if not hide them outright, without disclosing this conflict to Rosenblood.
According to the complaints, Ken Rosenblood was allegedly the victim of a carefully orchestrated deceit by Henry Schein executives to induce him to bring them into a deal to buy companies with which they were actually competing, harvest from him all his knowledge and plans for a massive compliance effort and promise him many things that were never intended. Henry Schein then allegedly ousted him and took away his rights to purchase additional equity, all while attempting to bury the valuable breakthrough infection control and compliance tools and programs that protect the health and welfare of dental patients and office workers, as well as the environment.
For more information and to read the complaints, go to: www.henryscheincaresless.com
Texas Fraud case - DC-15-10420
Texas Shareholder Derivative Claim - DC-15-10418