Matrix Medical Accused of Acquiring Competitor Just to Ground It

Dec. 7, 2020, 10:55 PM

Matrix Medical Network and its private equity backers were hit with an antitrust lawsuit in Florida federal court Monday claiming they should be forced to divest the assets of rival tech startup HealthFair after buying it for $160 million solely to eliminate a competitor in the health insurance risk adjustment market.

“Rather than combining these two firms” into a more effective company, as they had pledged to do, Matrix and its affiliates “used the acquisition to control and suppress an innovative competitor” and “impede growth in mobile offerings” that were eroding their market dominance, the complaint says.

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