Innovative Health has secured a legal victory against Johnson & Johnson’s Biosense Webster unit, with a U.S. District Court jury awarding the medical device reprocessor $442 million in damages over antitrust violations tied to reprocessed device use.

The Scottsdale, Arizona-based company sued Biosense Webster in 2019, alleging that its "case coverage" policy restricted hospitals from using FDA-cleared reprocessed devices in electrophysiology procedures. Under the policy, Biosense Webster would withhold technical support for its CARTO 3 cardiac mapping system if third-party reprocessed devices were used — effectively limiting access to essential case support in order to protect its market share.

Although the U.S. District Court initially granted summary judgment in favor of Biosense Webster, the Ninth Circuit Court of Appeals overturned that ruling, sending the case back for trial. On May 16, 2025, the jury found in favor of Innovative Health on all four antitrust claims, concluding that Biosense Webster had violated both federal and California antitrust laws.
A permanent injunction issued on August 27 requires the company, now operating under the name Johnson & Johnson MedTech, to end the disputed policy and cease any similar practices that hinder the use of reprocessed devices. The order also mandates the establishment of a hotline for reporting such conduct.

“Our customers have really felt taken advantage of,” said Innovative Health CEO Rick Ferreira. “It is on their behalf we brought this case, and the court’s decision is their victory as much as it is ours.”

The ruling is expected to enable hospitals to expand reprocessing programs and may influence broader industry practices. Legal observers note the decision could have implications for other medical device suppliers that bundle pricing, tie equipment to consumables, or place restrictions on reprocessed product use.

U.S. Healthcare Homepage