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US: Medical tech co settles class actions for monopolizing needle market

By  |  August 2, 2013

Medical technology giant Becton Dickinson & Co. announced Thursday it has reached a settlement of $22 million to end four class action lawsuits against the firm accusing the company of attempting to monopolize the hypodermic needle market. Specifically, members of the class action claimed BD of squeezing competitors out of the market by offering steep discounts on bundled hospital equipment products so long as hospitals agreed to buy the majority of their needles from BD. Further, BD was accused of giving company stock to group purchasing organizations, which determine prices set for hospitals. Court documents allege that such agreements were anticompetitive, violated antitrust law, raised prices and reduced innovation. The company announced the settlement along with its third-quarter earnings report. BD says the settlement cut share prices by 7 cents.

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