A Medical Device Daily

PolyMedica (Wakefield, Massachusetts) reported that the Federal District Court in Fort Pierce, Florida, has determined that its subsidiary, Liberty Medical Supply (Port St. Lucie, Florida), violated the Fair Labor Standards Act with respect to its former overtime compensation and lunch break deduction policies.

The court ruled that upon final resolution of the remaining legal issues in the case, it would enter a judgment against the company. A former employee filed the lawsuit against the company in 2005.

“We respectfully disagree with the court’s ruling and plan to appeal the decision to the 11th Circuit Court of Appeals once a final judgment has been entered,” said Patrick Ryan, president/CEO of the company. “We anticipate a final judgment could be entered in late April 2007 and that the appeals process could take as long as 24 months. We believe that our former policy regarding lunch break deductions is supported by both law and industry practice.”

The company stated that, based on the recent rulings in this matter, it plans to record a reserve of roughly $1.4 million to reflect the potential amount of the judgment, the company’s legal fees and associated costs, and the legal fees of the plaintiffs that the company may be required to pay. “Recording such a reserve should not be misinterpreted. Although fiscal responsibility requires us to do so, we are optimistic that the Court of Appeals will reverse the District Court’s ruling,” Ryan said.

PolyMedica provides blood glucose testing supplies and related services to people with diabetes.