Biomet said it agreed to settle more than 1,000 lawsuits filed over its M2A Magnum hip implants and will likely exhaust the $50 million it set aside to cover the legal tab.

The multi-district litigation over the M2A Magnum, a metal-on-metal implant, encompassed 1,012 suits as of Jan. 31, Biomet said. Lawsuits filed by April 15 can get in on the settlement, the orthopedic implant maker said. The MDL is overseen in South Bend by Judge Robert Miller Jr. of the U.S District Court for Northern Indiana.

"Biomet continues to evaluate the inventory of lawsuits in the MDL pursuant to the categories and procedures set forth in the settlement agreement. The final amount of payments under the settlement is uncertain," the company said. "Biomet is pleased to have reached this settlement and have the MDL resolved. Biomet appreciates the guidance provided by Judge Miller to bring this litigation to an expeditious and efficient resolution."

Biomet said the deal does not include all of the lawsuits pending in state courts over the M2A Magnum implant. Once the $50 million set-aside is paid out, an insurance policy worth $100 million is slated to kick in, according to a regulatory filing.

"The company’s insurance carriers have been placed on notice of the claims that are subject to the settlement, and have been placed on notice of the terms of the settlement. As is customary in these situations, certain of the company’s insurance carriers have reserved all rights under their respective policies and could still ultimately deny coverage for some or all of the company’s insurance claims. However, the company continues to believe its contracts with the insurance carriers are enforceable for these claims and the settlement agreement. Therefore, it believes it is probable that it would receive from its insurance carriers the full amount by which the ultimate losses under the settlement exceed $50.0 million," Biomet said. "The Company is currently assessing any necessary adjustments to the current accrual amount to cover the estimated full amount of the settlement, and assessing any potential receivables to be recorded for recoveries from the insurance carriers.

Last August, Biomet failed to convince Miller that federal preemption laws protect it from the claims in 1 of the lawsuits from the Indiana MDL.