By Ben James

Law360, New York (October 03, 2011, 1:43 PM ET) -- A California federal judge on Friday dismissed Daw Industries Inc.'s antitrust suit accusing Hanger Orthopedic Group Inc. of conspiring to monopolize the market for microprocessor-controlled prosthetic knees, citing a lack of evidence that Hanger specifically intended to destroy competition.

U.S. District Judge John Houston signed off on a 13-page order granting Hanger's bid for summary judgment on Daw's claims alleging violations of California's Cartwright Act, unfair business practices and trade libel.

Daw, which said it distributed a prosthetic knee called the self-learning knee, or SLK, alleged...