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Medtronic ordered to pay $382m in anticompetitive surgical device lawsuit
Yahoo Finance· 2026-02-09 12:43
Core Viewpoint - A California court has ordered Medtronic to pay Applied Medical nearly $382 million in damages for monopolistic practices in the bipolar electrosurgical devices market [1] Group 1: Lawsuit Details - Applied Medical filed a lawsuit in February 2023, alleging that Medtronic and certain hospital group purchasing organizations (GPOs) had contracts favoring Medtronic as the 'sole source' for advanced bipolar electrosurgical devices, specifically the LigaSure device [2] - The lawsuit claimed that hospitals faced "financial penalties" and other burdens if they circumvented the GPOs' contracts, which restricted their procurement options [3] Group 2: Court Ruling and Implications - A jury in Los Angeles sided with Applied Medical, confirming that Medtronic used restrictive contracts with healthcare providers [3] - Following the verdict, Applied Medical announced plans to seek injunctive relief to prevent Medtronic from enforcing these restrictions [3] Group 3: Industry Impact - Gary Johnson, a representative for Applied Medical, stated that the ruling validates fair competition and could help hospitals access innovation and value by dismantling complex contractual barriers [4] - Applied Medical emphasized that it was unable to compete effectively with its Voyant device due to Medtronic's restrictive practices and bundling strategies [5] - The company also noted that Medtronic's larger business in other surgical products allegedly conditioned discounts on hospitals purchasing Medtronic's bipolar devices, further stifling competition [6]