Stryker (NYSE:SYK) today inked a deal to settle thousands of product liability lawsuits over a pair of recalled metal-on-metal hip implants for more than $1 billion.
The deal was announced today by Judge Donovan Frank of the U.S. District Court for Minnesota, where Frank is overseeing some 1,800 lawsuits filed over Stryker’s Rejuvenate and ABGII devices. A state judge in New Jersey, Judge Brian Martinotti of the New Jersey Superior Court for Bergen County, is overseeing another 2,100 similar lawsuits.
Stryker recalled the Rejuvenate and ABG II implants in July 2012.
The settlement calls for each plaintiff in the covered cases to receive as much as $300,000 for each implant, meaning Stryker could be on the hook for up to $1.17 billion. Stryker did not admit to any liability or wrongdoing in the settlement.
Stryker began hashing out settlements with New Jersey Rejuvenate patients last December.
"The health and well-being of patients is Stryker’s top priority," Stryker Orthopaedics reconstructive division president Bill Huffnagle said in prepared remarks. "Following our voluntary recall and our patient support program for recall related care, this Settlement Program provides patients compensation in a fair, timely and efficient manner."
Stryker said it’s recorded charges of $1.425 billion for the settlements, which cover "significant Rejuvenate modular-neck and ABG II modular-neck litigation activity in the U.S.," according to a press release. Most of the settlements are expected to close by the end of 2015, Stryker said.
"Some lawsuits, however, will remain and Stryker Orthopaedics will continue to defend against remaining claims," the company said.
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