Medical technology company Conmed (NASDAQ:CNMD) has filed a lawsuit against giant Johnson & Johnson (NYSE:JNJ) claiming antitrust practices. The New York-based maker of medical instruments and tools is claiming J&J has used unfair tactics to "corner" 60% of the $1 billion market for endoscopy surgical devices used in minimally invasive surgery.

J&J's product prices are higher than Conmed's, yet it outsells its small competitor due to J&J's "monopoly" status and "bullying" practices with hospitals, the company claims in its filing. Conmed's market share for the products in question is lower than 5%, but would probably be closer to 20% if not for J&J's anticompetitive practices, a Conmed attorney is quoted as saying.

The lawsuit did not specify damages that Conmed is seeking. Aside from money, the company claims it wants a chance to compete fairly. A spokesperson for J&J said the company operates within all laws and regulations, and had not seen the lawsuit.

A company as large as J&J is no stranger to suits, and naturally has a legal reserve set aside for such occasions. More pressing on investors' minds is news from two weeks ago, which reported medical concerns with J&J's breakthrough Cypher stents.

J&J's stock held up through the bear market, but is seeing new 52-week lows this year, pricing it at nearly a 2% yield with a trailing P/E of 21 (which mirrors free cash flow), the low-end of its P/E range in the last six years. It's certainly worth watching.

Though the stock isn't "cheap" yet, it's nearing attractive levels for new potential buyers. For existing shareholders who are reinvesting dividends, there's no reason not to stay the course.