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The legal fight between Medtronic and Applied Medical has entered a critical phase, with jurors now weighing whether the medical device maker used unlawful tactics to block competition and cost its rival hundreds of millions in sales.

Read our earlier report on how the dispute began here.

In the latest development of the Medtronic antitrust lawsuit — following earlier USA Herald reporting on Applied’s claims of restrictive hospital contracts — a California federal jury heard closing arguments this week outlining potential damages of up to $381 million.

Applied Medical alleges Medtronic worked to protect its LigaSure surgical device by limiting hospitals’ access to competing technology, including Applied’s Voyant advanced bipolar system. Lawyers for Applied presented internal company emails and strategy documents that they say show deliberate efforts to slow or prevent adoption of the competing product.

During closing arguments, attorney Joseph Re of Knobbe Martens pointed to what he described as “war game” planning sessions inside Medtronic. According to court filings and testimony, these exercises focused on contract structures, bundling arrangements, and financial penalties tied to hospitals that tested rival devices.

Re told jurors the documents reflect a strategy centered on market control rather than product upgrades or price competition.

Applied also introduced a 2019 internal message in which a Medtronic executive referred to building an “ultimate gorilla” product portfolio. The plaintiff argues the language shows confidence in market dominance rather than fair competition.

Medtronic disputes those claims. The company says LigaSure remains popular with surgeons and hospitals based on performance and reliability. Its legal team maintains that bundled contracts and group purchasing agreements comply with antitrust law and deliver cost savings to healthcare providers.

To counter that argument, Applied highlighted sales data from Europe and South Korea, where bundling practices face tighter limits. In those regions, Voyant reportedly gained customers more freely, which Applied says shows how restrictions in the U.S. market hindered competition.

Expert witnesses for Applied estimated lost domestic sales between $275 million and $381 million. Attorneys also noted that Medtronic did not present its own damages calculation during the trial.

The case, filed in 2023, began trial proceedings on Jan. 20, 2026. Jury deliberations are expected to start following the conclusion of closing arguments.

The lawsuit — Applied Medical Resources Corp. v. Medtronic Inc. — is being heard in the U.S. District Court for the Central District of California under case number 8:23-cv-00268.

A verdict could influence how major medical device manufacturers structure contracts with hospitals nationwide, especially practices tied to bundling and long-term purchasing agreements.