Zimmer Biomet Ordered to Defend Fraud Claim in Device Deal Case

Zimmer Biomet Holdings Inc. lost its bid Friday to end fraud litigation over its acquisition of a soft tissue repair platform, although the medical device giant did succeed in narrowing the legal dispute.

A Delaware Chancery Court judge let former Embody Inc. investors move forward with one claim seeking up to $47.5 million more out the deal, which involved an initial $155 million payment and up to $120 million down the line based on post-transaction milestones. It’s conceivable Zimmer tricked Embody into the deferred-payment structure—depressing the upfront price—by touting false plans to bring on 94 new sales representatives, the judge ...