Krause v. Integra LifeSciences Corporation

District Court, D. Minnesota·Decided September 16, 2025·No. 0:24-cv-04339·Unknown

Opinion

UNITED STATES DISTRICT COURT DISTRICT OF MINNESOTA

SUSAN KRAUSE, Case No. 24-cv-4339 (LMP/ECW)

Plaintiff,

v. ORDER GRANTING DEFENDANT’S PARTIAL MOTION TO DISMISS INTEGRA LIFESCIENCES CORPORATION,

Defendant.

Jonathan D. Miller, Debra L. Weiss, and Anthony W. Joyce, Meagher & Geer, P.L.L.P., Minneapolis, MN, for Plaintiff.

C.J. Schoenwetter, Bowman and Brooke LLP, Minneapolis, MN; John T. McDonald, Reed Smith LLP, Princeton, NJ; and Joseph J. Mammone, Jr., Reed Smith LLP, Dallas, TX, for Defendant.

Plaintiff Susan Krause (“Krause”) alleges that her former employer, Defendant Integra LifeSciences Corporation (“Integra”), discriminated against her because she engaged in whistleblower activity and because of her sex, retaliated against her because she opposed the alleged discrimination, created a hostile work environment, inflicted emotional distress on her intentionally, and defamed her. ECF No. 8 ¶¶ 81–132.1 Integra moves to dismiss only Krause’s intentional infliction of emotional distress claim (Count Five) and defamation claim (Count Six). ECF No. 43. For the following reasons, the Court grants Integra’s motion.

1 ECF No. 8 is currently sealed in its entirety pursuant to Local Rule 5.1. A publicly filed and redacted version is found at ECF No. 65. The Court cites to the sealed complaint. BACKGROUND2 Integra is a “global medical technology company that develops, manufactures, and

sells medical products.” ECF No. 8 ¶¶ 2, 8. In June 2021, Integra hired Krause as its Corporate Vice President and Chief Quality Officer (“CQO”), a role in which she served until March 11, 2024. Id. ¶ 7. Krause was hired by Integra, which is headquartered in New Jersey, with the knowledge and acceptance that she would live in Minnesota, would work from Minnesota most of the time, and would travel across the country as necessary. Id. ¶ 4.

During Krause’s employment, Integra was led in part by Chief Executive Officer Jan De Witte (“De Witte”) and Chief Legal Officer Eric Schwartz (“Schwartz”). Id. ¶¶ 9– 10. Krause was hired to take over Integra’s quality group, a 600-person group responsible for overseeing the quality of over 25,000 different products which are produced across the country. Id. ¶ 11.

Krause alleges that De Witte and Schwartz repeatedly stymied her efforts to improve quality issues and repeatedly “threatened, yelled at, used profanity toward, and verbally abused [her] in retaliation for her refusal to disregard significant and potentially dangerous quality issues.” Id. ¶¶ 12–13. For instance, after the FDA investigated Integra’s Boston facility in November 2021 and discovered quality control issues there, the FDA required

2 Because Integra’s motion is limited to Krause’s intentional infliction of emotional distress and defamation claims, this factual background focuses on allegations relevant to those claims, allegations that are accepted as true at this stage. Gorog v. Best Buy Co., 760 F.3d 787, 792 (8th Cir. 2014). Integra to develop a solid remediation plan or face more severe adverse action. Id. ¶ 17. Over the following year, Krause worked “exhaustively” while allegedly being undercut by

De Witte, making it “nearly impossible to address the necessary quality work.” Id. ¶¶ 18– 22. After the FDA determined that a recall was necessary, De Witte allegedly pressured Krause to put the product back on the market before the product was safe, and, when she refused, he hurled “constant verbal abuse and hostility.” Id. ¶ 22. In November 2022, Krause was hospitalized for high blood pressure. Id. ¶ 27. While hospitalized, De Witte told her that she was to attend an executive meeting in New

York on Friday evening. Id. Krause was released from the hospital on that Wednesday and informed Integra that she could not fly to the meeting because of her health issues, but De Witte nevertheless expressed his displeasure at her for not attending the meeting. Id. The FDA conducted another investigation of the Boston facility in March 2023 and demanded some internal documents. Id. ¶ 33. Schwartz initially refused to provide those

documents, but he later consented to their release after Krause raised the noncompliance to De Witte directly. Id. Schwartz subsequently called Krause and “repeatedly yelled and swore at her.” Id. ¶ 34. Similarly, in May 2023, Krause objected to Integra’s plan to ship inventory from Europe to Boston and “illegally relabel it for sale in the United States.” Id. ¶ 40. De Witte nonetheless instructed Krause to circumvent the law because “no one would

know.” Id. On June 1, 2023, Schwartz “ridiculed, swore at, undermined, and humiliated” Krause—in front of a group of employees and outside counsel—because the Boston remediation efforts were not complete, asking her, “What the fuck have you been doing? You’ve been in Boston every week for the last couple months and all issues should have been fixed by now.” Id. ¶ 44. And in December 2023, when Integra’s Product Safety Board decided to recall one of Integra’s products, De Witte and Schwartz allegedly tried to

override the Board’s decision, going as far as to threaten to withhold Krause’s bonus if the product was recalled, id. ¶¶ 52–53. De Witte and Schwartz also pressured Krause to “remove negative information” from various safety presentations Krause made to Integra’s Board of Directors. Id. ¶ 56. When Krause tried to push back, De Witte and Schwartz “embarrassed her in meetings; used sarcastic, condescending, or otherwise unprofessional tones when speaking to her;

disinvited her from meetings; and retaliated by threatening to withhold compensation.” Id. ¶ 57. Finally, on March 7, 2024, Schwartz disagreed with a proposed action plan presented by Krause and “angrily voiced his disagreement with the assessment, and started yelling at [Krause]” until De Witte stopped him. Id. ¶ 69. The following day, De Witte

demanded that Krause sign a letter to the FDA informing the FDA that a whistleblower’s allegations were false; Krause refused, but De Witte and Schwartz nevertheless pressured her to sign the letter. Id. ¶ 70. Krause resigned three days later but alleges that De Witte’s and Schwartz’s misconduct did not stop. Id. ¶ 72. For instance, during a May 6, 2024 earnings call and in

response to an investor’s question “regarding the need to re-visit long range planning for the Boston facility given the delayed restart of production,” De Witte informed the investors that Integra had “made changes to the operations and quality leadership and structure to ensure the right focus and capabilities [are] applied to Boston.” Id. ¶ 73. Krause alleges that the statement implied that Krause was the problem with the Boston facility. Id.

In general, Krause alleges that Integra’s conduct led her to experience “depression, post-traumatic stress disorder, anxiety, nightmares, insomnia, and other mental health issues” along with “physical injury including hypertension, headaches, nausea and vomiting, [and] gastrointestinal issues.” Id. ¶¶ 75–76. She has undergone mental health therapy and has been prescribed medication for high blood pressure. Id. ¶¶ 19, 77. Krause brought her complaint in Minnesota state court on November 8, 2024, and

Integra thereafter removed it to this Court based on diversity jurisdiction. ECF No. 1. Integra now moves to dismiss counts five and six of Krause’s complaint, which claim that Integra’s actions constitute intentional infliction of emotional distress (“IIED”) and defamation under Minnesota law. ECF No. 8 ¶¶ 118–32. ANALYSIS

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