Attorney General Ken Paxton announced a second settlement concerning an antitrust investigation into an illegal group boycott in the dental supply market. Texas filed suit against Henry Schein, Inc. in Travis County District Court, alleging that Henry Schein violated state antitrust law. An agreed final judgment prohibits Henry Schein Dental from engaging in similar unlawful conduct. Texas settled a similar suit with Benco Dental Supply Company in 2015.

“Conspiring with others to prevent new distribution channels for goods and services is contrary to the free market and violates antitrust laws,” said Attorney General Paxton. “Such interference should not be tolerated in the dental supply industry or any other. My office will continue to ensure that companies doing business in Texas have the opportunity to compete in a truly free market.”

The state’s antitrust action stemmed from a three-year investigation into allegations that Schein and two of its competitors worked together to thwart the entry of a lower-cost, online source of dental supplies provided by the Texas Dental Association (TDA). The state alleged that Schein and others colluded to discourage distributors and manufacturers from working with the TDA and its business partner, and agreed not to attend the TDA’s annual trade show in 2014.

The state’s agreement with Schein requires Henry Schein Dental not to participate in anticompetitive activities in the future and institutes additional antitrust training for the company. Schein has also agreed to pay $300,000 to reimburse the state for investigative costs and attorneys’ fees.