Monday, medical technology company Masimo Corp. (MASI) said that Ninth Circuit Court of Appeals affirmed 2006 antitrust liability verdict by Federal District Court against Tyco Healthcare. The original verdict was related to Nellcor pulse oximetry products and the court has found that Tyco, now Covidien, maintained a monopoly power and anti competitive practices in violation of certain acts.
The jury of federal court in Los Angeles had awarded Masimo $140 million in damages on March 21, 2005, after a four-week trial. According to Masimo, Tyco had injured Masimo by its anti-competitive practices by entering into agreements with Group Purchasing Organizations. Masimo initiated the litigation in 2002.
The 2006 verdict said Tyco's sole-source agreements and market-share based compliance pricing contracts were unlawful restraints of trade in violation of Section 1 of the Sherman Act and unlawful exclusionary dealing arrangements in violation of Section 3 of the Clayton Act.
Commenting on the verdict, Joe Kiani, Founder and CEO of Masimo, said, "Medical products, from drugs and implantable devices to pulse oximeters, should be judged on their own merits and not based on artificial restraints on hospital purchasing placed by large manufacturers."
MASI is currently trading at $26.37, down $0.20 or 0.75% on Nasdaq.
For comments and feedback contact: editorial@rttnews.com
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.