DJO Global and Ironshore Specialty Insurance agreed to settle their beef over a $10 million policy the medical device company invoked to cover legal claims in personal injury lawsuits filed over pain pumps it sold.
Ironshore sued DJO in late 2013, seeking to recoup the $10 million it paid out on the policy, alleging that DJO concealed allegations that it promoted the off-label use of pumps it distributed made by I-Flow and McKinley Medical.
Plaintiffs in the personal injury lawsuits alleged that the pumps, used to deliver anesthetics after shoulder or knee surgery, damaged their cartilage. Ironshore alleged that, when DJO applied for the policy, it claimed that it was accused only on product liability grounds and that I-Flow and McKinley Medical would defend or indemnify it in any lawsuits, according to documents filed with the U.S. District Court for Southern California.
Ironshore wanted the court either to void and rescind the policy and order DJO to repay money the insurer paid out, excluding any premiums paid for the coverage, or to reform the policy to exclude coverage for all pain pump cases and order DJO to repay Ironshore, according to court records. Ironshore is also seeking compensatory damages, interest and legal costs.
Last week Judge Roger Benitez granted a joint motion to dismiss the case with prejudice, with each party bearing their own legal costs, after DJO and Ironshore said they inked a global agreement to put their case and a related 3rd-party lawsuit to rest.
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