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Former executive files three lawsuits against Henry Schein

Henry Schein Inc. is being sued by former

Henry Schein Inc. is being sued by former dental-industry executive Kenneth Rosenblood charging that the company had a "hidden agenda" on two acquisitions he helped initiate. Credit: Ed Betz

A former dental-industry executive has filed three related lawsuits in state courts in Texas and Delaware charging that senior Henry Schein Inc. executives had a "hidden agenda" on two acquisitions that he helped initiate. He is seeking more than $50 million.

The former executive, Kenneth Rosenblood of Los Angeles, on Tuesday filed the lawsuits in Dallas County, Texas, and Newcastle County, Delaware, alleging that top Henry Schein executives misled him when he brought the Melville company into business deals to invest in two health compliance companies along with his own investment group, RIG.

With revenue of more than $10 billion, Henry Schein is Long Island's largest publicly traded company. In an email, the company said the lawsuit was baseless.

"We believe the allegations are meritless, and we intend to defend ourselves vigorously," the company said. "As context, Henry Schein Inc. has a long history of serving the marketplace and the community with integrity and honesty. It is why we have been named to Fortune's list of the World's Most Admired Companies for 14 consecutive years and why we have been named to Ethisphere's List of the World's Most Ethical Companies annually since 2012."

Banyan International Corp. of Abilene, Texas, and HealthFirst Corp., of Seattle, are part of Henry Schein's Emergency Compliance Products Group, where Rosenblood was general manager from March 2010 until he was terminated in September 2014. The business unit focuses on products for dentists' offices related to health emergencies and infection control.

The Banyan deal closed in March 2010, and the HealthFirst deal closed in August 2010, making Henry Schein the majority owner of each, according to one of the lawsuits.

In the suit, Rosenblood contended that Henry Schein did not fully support the Emergency Compliance Products Group because Schein executives gave preference to other competing items from its product line.

He also challenged the contract clause that bars him from competing against Schein for three years after termination as "unreasonable."

Several news releases and a website, henryscheincaresless .com, related to the lawsuit challenge the company's carefully nurtured public image. The Henry Schein Cares Foundation contributes to health-related charities and provides emergency supplies after natural disasters and epidemics.

A previous lawsuit brought by Rosenblood related to his termination at Discus Dental, a seller of tooth-whitening products, was rejected by a Los Angeles Superior Court judge in April 2009. The judge wrote that Rosenblood "made himself impossible" and was not treated "cruelly or unfairly" at Discus. The judge ruled that "the issue of damages is moot."

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