On November 3, 2014, Stryker Corporation reached a global settlement in the Stryker Recall Litigation with the lead plaintiffs' attorneys representing thousands of individuals required to get additional hip replacements or corrections because a faulty medical devices produced by Stryker. The settlement, announced yesterday in U.S. District Court in St. Paul, Minnesota, could result in more than $1.4 billion in payouts.
According to Levin Papantonio lawyer Ben Gordon, one of the lead counsel to help negotiate the settlement, Stryker's Modular Rejuvenate and ABG II Femoral Hip Implants were defective in several ways, including that they were made of two different metals that began to oxidize and corrode as the metals wore down, resulting in massive tissue damage.
Stryker issued a voluntary recall of the product in July 2012. The settlement covers an estimated 3,000 people in 39 states who had to get surgery to replace or revise the products. Each plaintiff will receive approximately $300,000, and some could receive more depending on the circumstances of their case.
In an SEC filing Monday, Stryker recorded charges to earnings totaling $1.425 billion, which the filing says is the "low end of the range of probable loss." "The ultimate cost to entirely resolve these matters will depend on many factors that are difficult to predict and may be materially different than the amounts accrued to date," the company stated in a press release. "Further charges to earnings may need to be recorded in the future as additional information related to patient enrollment in the Settlement Program becomes available."
For More Information Regarding the Stryker Litigation, visit our Stryker Hip Recall Lawsuit Page.