The Kerlan-Jobe Orthopaedic Clinic, Medical Group, Inc. (Kerlan-Jobe), known for its pioneering Tommy John surgery and commitment to athletes and first responders, filed a $150 million lawsuit today against Cedars-Sinai Medical Care Foundation, Santa Monica Orthopaedic and Sports Medicine Group (SMOG), and several top executives.
The lawsuit, filed in Los Angeles County Superior Court (Case number: 25STCV01015), alleges that Cedars engaged in a decades-long effort all designed to appropriate Kerlan-Jobe’s reputation, intellectual property, assets, and patient base without compensation.
“Cedars-Sinai, hiding behind its non-profit status, has orchestrated an underhanded scheme to crush Kerlan-Jobe, steal its assets, and prioritize profits over patient care,” said a spokesperson for Kerlan-Jobe. “We’re fighting not just for our practice, but for the Los Angeles community, including first responders who depend on us.”
Kerlan-Jobe alleges Cedars and members of its executive leadership conspired with SMOG, at times in violation of state and federal law, to:
- Prevent patients from scheduling appointments with Kerlan-Jobe doctors, all while holding itself as Kerlan-Jobe and misleading the public.
- Unlawfully reap a financial windfall for Cedars, ostensibly a “non-profit” healthcare institution, by seizing control of Kerlan-Jobe's key assets, brand and intellectual property rights, while paying nothing to Kerlan-Jobe in return.
- Drain Kerlan-Jobe of many of its key physicians and coerce them into accepting employment with SMOG in violation of non-compete and fiduciary duties owed to Kerlan-Jobe.
- Retaliate against the remaining Kerlan-Jobe physicians who stood in the way and attempt to starve their medical practices until they will have no choice but to dissolve and fold Kerlan-Jobe into SMOG.
According to the complaint, Cedars and Kerlan-Jobe entered into a decades-long contract which expired on October 1, 2024 and provides for an 18-month wind down period. Upon execution of the contract, Cedars allegedly demanded that Kerlan-Jobe’s physicians “row the boat” to bring all patient services, referrals, surgeries and treatments through facilities that Cedars controls. The complaint states that some former Kerlan-Jobe physicians cooperated and colluded with the Cedars Enterprise and received benefits such as directorship roles, multimillion-dollar bonuses and large lump sum payoffs. In contrast, those at Kerlan-Jobe who exercised their contractual rights and independent professional judgment as to the care of their patients were allegedly punished for their oppositions.
The complaint alleges that as of November 1, 2024, Kerlan-Jobe has no ability to bill for patient services, no control over its phone lines or websites and only has three non-disqualified physicians left to rebuild a nationally-recognized sports orthopaedic practice that Cedars allegedly sought to systematically destroy.
The complaint further states that this misconduct is reprehensible to public health policy and violates the law. Cedars has allegedly become solely focused on increasing its rankings and national renown so that it could better attract and serve the rich and famous and enrich its senior executives through lucrative multimillion-dollar salaries. This puts Kerlan-Jobe's commitment to serve the entire Los Angeles community, particularly at this critical time, in jeopardy.
“For 45 years, we’ve set the standard for sports medicine and community care. Cedars’ actions threaten not just our legacy but the well-being of thousands of patients,” the spokesperson added.
About Kerlan-Jobe Orthopaedic Clinic
For nearly half a century, Kerlan-Jobe has been the nation’s premier sports medicine provider, renowned for treating professional athletes, first responders, and patients from all walks of life. Known for its groundbreaking surgical techniques, including the pioneering Tommy John surgery, Kerlan-Jobe has set the standard for orthopaedic care in the United States. The clinic has also established prestigious educational fellowships and remains a cornerstone of orthopaedic innovation and community service in Los Angeles. Kerlan-Jobe’s physicians have provided vital treatment to the general public, professional and amateur athletes from around the world, and unparalleled service to the local community.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250116179069/en/
Contacts
Alexis Braun
212-318-3103
alexis.braun@nortonrosefulbright.com
