Endo Health Solutions (NSDQ:ENDP) subsidiary American Medical Systems said it’s agreed to pay $54 million to settle personal injury lawsuits filed over its pelvic mesh products.
The lawsuits, filed since 2008 in federal and state courts around the country, accuse AMS of causing injuries with its transvaginal surgical mesh products designed to treat pelvic organ prolapse and stress urinary incontinence, according to a regulatory filing.
Endo Health acquired the lawsuits when it paid $2.9 billion in cash for AMS in 2011.
The settlement, which does not include an admission of guilt or liability by AMS, covers a group of filed and unfiled lawsuits. The deal calls for AMS to put the $54.5 million into an escrow account before July 15; the funs will only be paid out if AMS wins full releases from 95% of the claimants covered in the agreement by October 12.
"Distribution of funds to any individual is conditioned upon a full release and a dismissal with prejudice of the entire action or claim as to all AMS parties and affiliates," according to the filing. "The company and AMS intend to continue to vigorously defend themselves in the remaining mesh product liability cases and in any new cases that may arise."
Other terms of the deal are confidential, according to the filing.
ENDP shares were down 0.6% to $37.28 apiece as of about 12:20 p.m. today, slightly ahead of the NASDAQ market, which was down 0.8%.
