March 28, 2015
Masimo Corp. vs. Tyco Health Care Group, L.P. and Mallinkrodt, Inc.
Plaintiff, a manufacturer and supplier of pulse oximetry products which are used for the non-invasive measurement of the oxygen content of blood, alleged that defendants engaged in exclusionary behavior and attempted to monopolize the market. More specifically, plaintiffs alleged that Tyco’s contracts with group purchasing organizations contained exclusionary provisions for the purchase of these pulse oximetry products–including sole sourcing, market share discounts and bundled pricing–and resulted in a significant portion of the U.S. healthcare market being foreclosed to Tyco’s competitors. As plaintiff’s liability and damages expert, Jeff Leitzinger provided two expert reports and testimony both in deposition and at trial. Trial ended with a verdict for Masimo and a damages award of $140 million. This amount was trebled since Tyco’s illegal conduct involved violations of the antitrust laws. The jury verdict has been partially overturned due to inconsistencies between liability findings and damages awarded. The matter has been remanded for a new damages trial.