Intuitive Surgical settles shareholder suits for $12m

February 5, 2018 By Brad Perriello Leave a Comment

Intuitive Surgical (NSDQ:ISRG) last week revealed a nearly $12 million legal settlement covering a slew of cases brought by investors alleging that the robot-assisted surgery pioneer misled them.

In a regulatory filing, Sunnyvale, Calif.-based Intuitive said it struck a deal in September 2016 to settle the cases filed by some five shareholders in state and federal court, dating back to 2013. Ratified more than a year later in one of the cases, by the end of last year the settlement had been put in place across the other suits.

The settlement prompted Intuitive to take an $11.7 million pre-tax charge for 2017 to cover the settlements costs, according to the filing.

Intuitive is also facing a spate of product liability claims, including a 55-patient, multi-state lawsuit brought in Missouri and about 43 individual suits in state and federal courts. Those lawsuits allege that patients were injured due to defects in the company’s flagship da Vinci robot-assisted surgery platform or because the company’s surgical training program was inadequate. The plaintiffs in the product liability cases also accuse Intuitive of failing to adequately warn about the risks of surgery using the da Vinci system, according to the filing.

“After an extended confidential mediation process with legal counsel for many of the claimants covered by the tolling agreements, the company determined during 2014 that, while it denies any and all liability, in light of the costs and risks of litigation, settlement of certain claims was appropriate,” Intuitive said in filing, adding that for the just-ended year that meant a pre-tax charge of $16.3 million “to reflect the estimated cost of settling a number of the product liability claims covered by the tolling agreements.”

Intuitive also said it included $12.8 million in accrued liabilities on its balance sheet for 2017 related to product liability legislation.

Last Chance to Save for DeviceTalks Boston!

Early rates for DeviceTalks Boston end August 15th.

Don't miss the chance to save $100 and join top medtech innovators including leaders from Hologic, Google, Gray Matter, TransEnterix, NxStage Medical, Smith & Nephew, HeartFlow, Dynatronics, Johnson & Johnson, Allied Minds, and many more.

View Full Agenda

Register today to save. Use code LASTCALL to save an additional 10%.

Calculations & Formulas for Coreless DC Motors
When selecting a Coreless Brush DC Motor for an application, there are several basic motor physics principles to consider to produce a safe, well-functioning, sufficiently-powered precision drive system. In this guide, we’ve provided important methods, formulas & calculations to determine power output of a coreless motor, the speed-torque curve, the current and efficiency plots, and […]
Smithwise helps startup find its focus
After Basil Leaf Technologies won the Qualcomm Tricorder XPrize in 2017, founder Dr. Basil Harris needed help figuring out how to bring this almost-all-in-one diagnostic tool to market. Basil Leaf’s mobile platform DxtER includes a group of non-invasive sensors that can wirelessly communicate with a smart device as they collect data on vital signs, body […]
Webinar: Medical Connector Selection Simplified – August 29
Wednesday, August 29, 2018 11:30am Eastern / 8:30am Pacific What three crucial business questions should you be asking before deciding on a custom connector assembly for your device? What business and technical strategies should you consider before making critical connector decisions? Join us in this live webinar as custom connector industry experts from […]
This implantable mesh can monitor heart activity and apply stimulations
Researchers from the Center for Nanoparticle Research at the Institute for Basic Science have developed a wearable and implantable device that measures electrophysiological signals and stimulates as needed for pain relief, rehabilitation and prosthetic motor control. The soft implantable recorded cardiac activity in multiple points of a swine heart in tests. The researchers on the […]
Avinger posts loss on disappointing sales
Avinger (NSDQ:AVGR) today posted a second-quarter losses-per-share that missed an analyst’s expectation, sending its share price down on Wall Street despite nearly halving its losses. The Redwood City, Calif.-based medical device maker reported losses of -$6.6 million, or -98¢ per share, on sales of $2.1 million for the three months ended June 30, 2018. That compares with […]
BARDA, J&J launch ‘reimagined’ emergency respiratory device challenge
The Dept. of Health and Human Services’ Biomedical Advanced Research and Development Authority and Johnson & Johnson‘s (NYSE:JNJ) Janssen R&D are launching a new crowdsourced tech development challenge looking to support innovative respiratory protection devices, according to a recently listed government posting. The new contest, dubbed the QuickFire Challenge, will look to award up to […]
“Snake oil” BP app got high user marks despite inaccurate results
People may like mobile blood pressure apps better when the apps reveal positive results, even if those results are inaccurate 80% of the time, according to a recent study. A team of researchers who previously revealed the inaccuracy of the Instant Blood Pressure (IBP) app returned to the topic to study 81 adults who compared the […]
Study slams FDA’s ‘fast-track’ approval process
More than 98% of the 161 foot and ankle devices that were recalled from 2007 through 2017 were approved through the FDA’s 510(k) process, according to a new study. That left one recalled device approved via the more stringent premarket approval (PMA) process and two for which the submission procedure was not indicated. The 510(k) process […]
SpaceLabs’ Arkon anesthesia system recalled again
The FDA has slapped SpaceLabs Healthcare with a Class 1 recall of its Arkon anesthesia delivery system for going into a “failed state” on numerous occasions since 2013. The recall covers 253 units. No injuries or deaths were reported. During the failed state, the mechanical ventilation function stops working while the machine is in use […]
Creating water-insoluble APIs using nanomilling
Robert Lee, president, Particle Sciences; Nick DiFranco, marketing specialist, Particle Sciences Poor water solubility is an increasingly common issue in pharmaceutical development. About 40% of marketed drugs and as many as 90% of active pharmaceutical ingredients (APIs) in the discovery pipeline are poorly water-soluble. When these APIs are introduced without modification or enhancement, they fail […]
How sensors could help doctors determine effective cancer treatment options
Chemical engineers from Massachusetts Institute of Technology have developed a sensor that could help doctors determine what the best cancer treatment option is based on how cells react to different types of chemotherapy drugs. The sensors are designed to detect hydrogen peroxide in human cells, which could help researchers determine new cancer drugs that increase […]