Co-Founders of ZOOM CARE Astonished at Take Over Attempt by Endeavor Capital
Dave Sanders and Albert DiPiero — the two physician co-founders of Zoom+Care — expressed astonishment at Stephen Babson’s and Endeavour Capital’s destructive and unprecedented legal maneuvers to snatch control of Zoom+Care, just as the innovative healthcare company achieves sustained profitability. Babson and Endeavour are seeking extraordinary judicial intervention into company management, based on incomplete, misleading and false allegations.
“Just last Friday, we were finalizing the terms of Endeavour’s next round of investment and had whittled down to 3 “open issues” dividing the parties after months of negotiations and mediation,” said Dave Sanders.
“We were surprised and disappointed in Babson’s mis-characterization of the Company’s financial condition. The Company is executing a board-approved plan to transition from development phase to profitability. Endeavour Capital financial officer reported last week that Zoom was a mere 3 months away from break-even. In fact, the Company paid mid-year bonuses to executives for achieving its board-approved financial plan. Despite its challenges Zoom has performed remarkably well in 2017 growing at over 20% per year, building a multi-million-dollar specialty practice within one year, launching its third-generation neighborhood clinics in Seattle, and implementing Zoomdeveloped technology innovations to enhance patient care and customer experience such as Chat and Timeline. Zoom is now one of Oregon's largest independent medical groups.”
“We’re particularly surprised and disappointed in Babson’s misleading statements because Endeavour pushed for more aggressive spending on expansion, marketing and corporate costs despite Sanders and DiPiero's objections.”
“We fear that this take-over attempt by financiers tragically loses track of what Zoom has always been about - safe and effective patient care. We’ve been able to maintain our quality of care throughout this difficult period, but have been very concerned about Zoom being controlled by financiers rather than by physicians. We’ve fought to ensure that physicians remain at the helm of Zoom.”
“Suddenly, without any warning on Monday, September 25, Babson’s firm hits us with a lawsuit seeking extraordinary judicial intervention into the company management – based on incomplete, misleading and false allegations. Their intent is clear - rather than negotiate, they are seeking to use the courts to gain control of Zoom and maximize the profits of their venture fund…it’s simply the worst case of 'pirate venture capital’,” said Dr. Sanders.
Doctors Sanders and DiPiero plan to fiercely resist Babson’s take-over attempt — “If our innovative healthcare company is to achieve its promise of radically changing the dysfunctional way healthcare is delivered, it’s important that healthcare professionals— rather than financial manipulators — play the leadership roles,” added Sanders and DiPiero.
A hearing is scheduled on this matter for Tuesday afternoon, September 26, in Multnomah County. Drs. Sanders and DiPiero will respond more fully to the allegations following the initial court hearing.