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Continental Orthopedic Appliances, Inc. v. H.I.P., 40 F. Supp.2d 109 (E.D.N.Y. 1999)

Jan 15, 1999

Suppliers of orthopedic and prosthetic (O&P) devices sued two suppliers and health maintenance organization (HMO), claiming that exclusive dealing agreement under which HMO agreed to approve O&P devices only from two suppliers violated federal and state antitrust laws. Defendants moved to dismiss. The District Court, Spatt, J., held that: (1) exclusive dealing agreement was not per se violation of Sherman Act prohibition of contracts, combinations or conspiracies in restraint of trade; (2) for purposes of determining whether antitrust claim was stated, relevant market would be deemed to include all health maintenance organizations within 11 county area; and (3) purchaser of assets of favored O&P supplier was included in suit.

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