Endo International (NSDQ:ENDP) subsidiary American Medical Systems Holdings reportedly accused “a pyramid of businessmen, doctors and lawyers” of convincing women to undergo unnecessary surgeries to remove pelvic mesh implants and inflate their damage claims.
AMS has set aside $1.9 billion to cover as many as 49,000 product liability lawsuits alleging injury from the devices. But the company claims it’s found at least 4 instances of women undergoing explantation procedures their own doctor’s didn’t recommend, funded by a lender working with the explanting surgeons. The company alleged in a court filing that hundreds more have been influenced to have the surgeries by a network of lenders, doctors and attorneys “orchestrating the exploitation of unsophisticated medical and legal consumers and seeking to perpetrate a fraud,” according to Reuters.
Medical funders buy up the unpaid surgical bills for mesh plaintiffs at a discount, then put a lien on the settlement for the full amount of the bill. It’s a practice that has become deeply entangled with medical device litigation.
Members of the alleged network denied any wrongdoing, saying they helped injured women receive necessary medical care they couldn’t afford or or obtain from nearby doctors.