In 2023, Orthofix Medical abruptly fired its then-CEO Keith Valentine, CFO John Bostjancic, and Chief Legal Officer Patrick Keran. The company said at the time that an external legal counsel investigation found the three had "engaged in repeated inappropriate and offensive conduct, violating multiple code of conduct requirements," leading to their termination "for cause." However, the company did not specify the violations, causing the stock to plummet 30% that day.

Now, as litigation filed by the fired executives in California state court progresses, details behind the terminations—including a large volume of vulgar, sometimes explicit, and racist text messages privately shared among the three—are gradually coming to light.

The executives filed suit in September 2023, naming as defendants Catherine Burzik (who served as board chair from June 2023 to July 2024 and as interim CEO from Valentine's termination until last January, when Massimo Calafiore took over as CEO) and current board member Wayne Burris. The lawsuit alleges defamation, invasion of privacy, and false statements, claiming the company collected and "mirrored" their personal phones under the guise of an investigation, but that the private texts were "irrelevant" to the probe.

In the original complaint filed September 10, 2024, the plaintiffs said most of the texts occurred in 2022, before they joined Orthofix. They described the messages as exchanges among colleagues who had worked together since 2015, lived near one another, were friendly, and shared "a common sense of humor," noting that no recipient "objected to the content or indicated it was unwelcome." The complaint also argued that the company's code of conduct guidance on workplace behavior and diversity, equity, and inclusion "is directed at outward misconduct involving and witnessed by other employees, and whether it applies to private text messages not involving other non-consenting employees is, at best, entirely unclear."

In January 2025, defense attorneys filed a motion to dismiss portions of the lawsuit (including defamation claims) and strongly condemned the conduct, stating that Orthofix was "fully justified" in firing the three former executives after discovering evidence that they had "made serious and inappropriate sexist, homophobic, racist, and other vulgar and demeaning comments about colleagues." The motion stated: "During meetings and calls, the former executives frequently made explicit comments while the demeaned employees were speaking. If that were not enough to justify termination (and it was), Orthofix also found evidence that the three engaged in serious and repeated bullying and other abusive behavior toward employees, that they managed a culture that demeaned and belittled the contributions of female employees, and that the three frequently acted aggressively, accepting and fostering vulgarity and personal attacks. These are unacceptable in the workplace."

Some relatively mild examples of texts cited in the filing include: during a conference call with market makers, Valentine texted Bostjancic and Keran that the other party "'is always so patient and willing to answer all questions at these investor meetings, and there are cute chicks!" Keran replied, "I want to be more involved in investor relations activities!" Bostjancic responded, "This one might not be of legal drinking age! And seems overly enthusiastic about orthobiologics."

Also on August 5, 2023, Valentine texted his frustration with auditors, using profanity: "They have more questions, so I have to spend another 1-2 hours with [Orthofix's] legal counsel." The filing states Bostjancic then replied, "Insist that the hot chick interviews you."

Attorneys for both the plaintiffs and defendants did not immediately respond to requests for comment. The complaint notes that Orthofix itself is not a party to this case, but the plaintiffs say they have filed claims against the company in a separate arbitration. An Orthofix spokesperson said the company does not comment on pending litigation. However, in its 10-K filing in February, the company stated that multiple lawsuits and arbitration matters related to the terminations of Valentine, Bostjancic, and Keran are being handled. The filing said: "The company disagrees with the arbitration claims and the allegations in the lawsuits against Ms. Burzik and Mr. Burris, and intends to vigorously defend against them. As this matter is in its preliminary stages, the company is currently unable to reasonably estimate possible losses or a range of losses."

Orthofix completed its merger with SeaSpine Holdings in January 2023. According to a company press release at the time, the combined company had 1,600 employees, with a product portfolio spanning biologics, spinal hardware solutions, and growth therapies, distributed to 68 countries.