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Related Lawyers: Hilary K. Scherrer, Brent W. Landau
Related Practice Areas: Antitrust / Competition

Schuylkill Health Sys. v. Cardinal Health 200, LLC, et al., No. 2:12-cv-07065-JS (E.D. Pa.) – Hausfeld represented direct purchasers in this antitrust class action alleging that defendants engaged in illegal tying, bundling, and exclusive dealing.

Hausfeld represented Schuylkill Health System, Titusville Area Hospital, and Warren General Hospital in a suit brought against Cardinal Health 200, LLC and Owens & Minor Distribution, Inc., the two dominant distributors of medical and surgical supplies. 

On behalf of the plaintiffs, Hausfeld alleged that the defendants imposed restrictive contractual terms on their hospital-customers that condition pricing on the thirty medical-surgical supply categories that defendants distribute to hospitals on those hospitals’ commitment to purchase their requirements for two of those categories, sutures and endomechanical products, for which defendants faced heightened competition from rivals.

If hospitals purchased sutures and endomechanical products from a rival distributor, defendants imposed substantial price penalties on those hospitals in the form of higher distribution fees for the remaining twenty-eight product categories that hospitals require to treat their patients. These restrictive contractual terms effectively excluded rival distributors from the suture and endomechanical distribution markets by making it economically infeasible for customers to purchase suture and endomechanical products from them.

Hausfeld alleged that these acts of bundling, tying, and exclusive dealing violated the antitrust laws. Hausfeld defeated the defendants’ motion to dismiss these claims and the case settled on a classwide basis in 2015.

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