Medical equipment maker JCR Medical Equipment Inc., which made surgical and emergency equipment, is under fire from an activist group that wants the company to pay for its damages.
The group, Doctors for the American Health Care Act, filed suit against the company on Thursday, claiming that it violated antitrust law by selling the surgical equipment that the group says is unsafe and violates state regulations.
JCR, which also makes medical equipment for private health insurers, has said it is confident the lawsuit will fail.
The company says it is not involved in the lawsuit.
The group says JCR’s sales of surgical equipment were subject to a state health inspection program that included safety inspections of all products sold.
The group says the inspections were not comprehensive and did not allow the company or its employees to inspect medical equipment in a way that would have prevented a serious injury or death.
The complaint, which was filed with the Federal Trade Commission, says that the company violated state regulations by failing to inspect all medical equipment, including the surgical devices, for the purposes of ensuring it complied with state laws on medical devices.
The complaint also says that JCR and its suppliers were not required to comply with state health safety requirements.
The company says that, in response to the complaint, it is in the process of revising the company’s operating procedures, making sure that they are as safe and effective as possible.
The suit asks the court to prevent JCR from using its existing surgical equipment for other purposes.
The lawsuit asks that JTRA pay the medical equipment company $1 million for its costs and damages, including lost wages and property damage.JCR and other medical equipment makers say that the complaints are baseless and have no merit.
Health Secretary David Shulkin has said he is investigating the complaint.
Last month, the U.S. Department of Justice announced it was filing a lawsuit in New York state challenging a $25 million settlement between a medical device maker and doctors.