Tyco Unit Loses Appeal of Verdict in Masimo Suit

A U.S. appeals court upheld a $164.2-million verdict against Tyco International Ltd.’s Nellcor unit in a lawsuit filed by rival Masimo Corp. over machines that measure the oxygen content in blood.

The U.S. Court of Appeals for the Federal Circuit in Washington also said the trial judge should have ordered Nellcor to stop selling pulse oximetry machines and directed her to issue a ban on such sales.

The suit is one of several between the two companies over oximetry machines. A different jury last year told Tyco to pay $420 million to closely held Masimo for antitrust violations in its marketing of the devices.

Irvine-based Masimo claimed that Nellcor, which has about a 70% share of the oximetry market, used contracts with hospital group purchasing organizations and manufacturers and other agreements to limit Masimo’s sales.