Stryker hip implant settlement to exceed $1.4B — 10 key facts

Written by Laura Dyrda | November 04, 2014 | Print  |

Howmedica Osteonics, a Stryker subsidiary, reached a settlement agreement to compensate eligible patients in the United States who underwent hip surgery replacement using the Rejuvenate Modular-Neck hip stem and/or ABG II Modular-Neck hip stem.

Here are 10 things to know about the case and settlement:

 

1. Stryker has recorded $1.4 billion in charges to earnings, representing the "low end" of a potential payment range associated with the settlement.

 

2. 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. The company is expecting the majority of the payments will be made at the end of 2015.

 

3. Stryker has taken liability for certain complications that could arise over the next two years related to the implant, according to a North Jersey report.

 

4. The patients who have the implant could receive $30,000 each or more, according to North Jersey. There is a $300,000 "base payment" per hip and additional payments of up to $550,000 for patients who suffered additional complications.

 

5. If 95 percent of the eligible plaintiffs in the suit don't enroll, Stryker can walk away from the settlement.

 

6. Both sides went through a successful early mediation program initiated by the New Jersey Superior Court Judge Brian R. Martinotti and chief mediator former U.S. Magistrate Judge Diane M. Welsh. They were able to resolve several pending lawsuits in federal courts and in other states.

 

7. The company recalled its metal-on-metal hip replacement implants in 2012 after evidence showed the metal-on-metal design could leave metallic debris in the patient and damage the patient's tissue and muscle.

 

8. DePuy previously agreed to pay $2.5 billion to resolve lawsuits from 8,000 patients who said they were injured by DePuy's metal-on-metal hip implant. All metal implants were used in around one-third of the hip replacements in the country, according to a New York Times report.

 

9. The settlement will close a significant number of the active litigation, but some lawsuits will remain and Stryker will continue to defend against those remaining claims.

 

10. This settlement could be historic in avoiding lengthy and costly trials. Stryker's website includes information about the mediation program and actions for patients with the implants to take.

 

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