Innovative Health Wins $442M Antitrust Verdict vs Biosense
Table of Contents
Case Background
In 2019, Innovative Health LLC, an Arizona-based medical device reprocessor, sued Biosense Webster, Inc., a California-based manufacturer of cardiac mapping systems and catheters. The dispute centred on the CARTO 3 cardiac mapping system used in electrophysiology studies to diagnose and treat heart rhythm disorders. Innovative claimed Biosense used its market dominance to unlawfully restrict competition in the sale of high-density mapping catheters and ultrasound catheters, and in providing clinical support for the CARTO 3 system.
Innovative alleged that while both companies were cleared by the FDA to sell new or reprocessed versions of these catheters, Biosense’s business practices shut out reprocessed products from the market, depriving hospitals of lower-cost alternatives.
Cause
The Plaintiff accused Biosense of multiple antitrust violations, including monopolization, attempted monopolization, unlawful tying arrangements, and exclusive dealing under both the federal Sherman Act and California’s Cartwright Act. Innovative claimed Biosense tied the sale of its catheters to its free clinical support program, used restrictive compatibility designs, and refused to support cases involving competitors’ reprocessed catheters.
Injury
Innovative stated that these practices locked it out of key hospital
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