Reuters reports today that a federal jury in California ruled that Medtronic
(NYSE: MDT)
has violated antitrust law and must pay $382 million in damages to Applied Medical Resources.
The suit dates back to February 2023, when Applied Medical accused Medtronic of monopolizing U.S. market competition for advanced bipolar devices used to cut tissue and seal blood vessels. The U.S. Federal Trade Commission (FTC) later got involved as well, critiquing Medtronic’s legal reasoning in the case.
Applied Medical claimed that Medtronic used its dominance in the market to promote bundling agreements with individual hospital systems and healthcare group purchasing organizations. This strategy, according to Applied Medical, sought to shut out competition, like its own Voyant system.
Today, a jury in California’s Central District found that Medtronic violated antitrust law through this bundling practice, Reuters said. The jury found that Medtronic sold LigaSure below cost and bundled it with other products. Applied Medical also claimed that the company’s agreements with hospital systems kept Applied from selling its Voyant devices.
The report says that Medtronic argued that its contracts were standard. Additionally, Reuters said the medtech giant claimed that Applied Medical failed to provide evidence showing the blocing of hospitals from buying different devices.
According to the report, Applied Medical believes a judge could triple its award.
In a statement shared with MassDevice via email, a Medtronic spokesperson said the company intends to appeal:
“Medtronic is disappointed with the jury’s verdict, and we plan to appeal. We remain confident that our business practices deliver the best product to our customers and at the value they expect. Surgeons choose Medtronic’s LigaSure device time and again because it outperforms Applied’s Voyant.”
