A Medical Device Daily

UltiMed (St. Paul, Minnesota) said it has filed a lawsuit in U.S. District Court for the District of Minnesota against BD (Franklin Lakes, New Jersey) seeking damages and injunctive relief related to alleged antitrust violations and torts committed by BD.

The company's complaint alleges that BD has engaged in anticompetitive acts to maintain monopoly power in the home use insulin syringe market. The complaint further alleges that “BD's anticompetitive acts have harmed the public by causing higher prices for home use insulin syringes, stifling product research and development, and driving health insurance costs higher [and] have harmed UltiMed by preventing UltiMed from competing on a level economic playing field despite UltiMed's efforts to sell equal or superior quality products at more economical prices.”

UltiMed is a medical technology company that makes an extensive line of medical products including disposable medical supplies, drug delivery devices and safe disposal solutions.

In other legalities: Mike Hatch, attorney general of Minnesota, said this week that he plans to investigate United Health Group (Minnetonka), the health insurer whose executive stock options have come under fire.

Hatch said he wants to probe compensation given to the company's directors, how that may have influenced their oversight of executive compensation, and how much was disclosed to shareholders.

At issue is whether senior executives at UnitedHealth, including Chairman William McGuire and President Stephen Hemsley, were allowed to set their options at a low point in the company's stock cycle and then maximize profits when the stock appreciated and the options matured.

Hatch said: “If you go on a board, and you're receiving $5 million, how can you be in a position to really be prudent with regard to the type of compensation you're going to be giving to the executives?”

Hatch has removed himself from a shareholder lawsuit against United Health, instead moving to launch his own investigation of the company.

The attorney general, who is running for governor this fall, is changing the state's involvement in the case to a friend of the court, rather than a direct party in the suit. This will allow Hatch to subpoena documents from United Health.

Hatch first joined the shareholder lawsuit in April to represent the more than 2.2 million shares of United Health that the state owns, now worth about $103 million.