Suture Distributor Sues Market Leaders Over Alleged Unfair Practices
Suture Express accuses Cardinal Health, Owens & Minor of manipulating prices, threatening customers, impeding competitors.
Published: December 18, 2012
Wound-care products distributor Suture Express has filed a $200 million antitrust lawsuit against Cardinal Health and Owens & Minor, alleging them of operating a monopoly that blocks competitors from gaining customers or expanding their market share.
The lawsuit claims that the 2 companies, which published reports say control 70% of the medical supply market, engage in unfair business practices such as charging customers more if they purchase products through Suture Express.
"Imposing these financial penalties would make it financially impossible for customers to buy suture and endomechanical products from another distributor, even if offered significantly better service and prices," says Suture Express CEO Brian Forsythe, in a statement posted on the company's website.
The Overland Park, Kans., specialty distributor also claims that these practices hinder its ability to expand its market share. The lawsuit, filed in a Kansas federal court earlier this month, seeks $200 million in damages for lost business.
In an e-mail, Cardinal Health spokeswoman Corey Kerr said, "We disagree with the allegations in the complaint, believe they are without merit and intend to vigorously defend against them."
An Owens & Minor representative was not immediately available for comment.
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