Sulzer Threatens Bankruptcy
November 13, 2001
As many analysts expected, Swiss medical device maker Sulzer Medica announced this week that it will file for Chapter 11 protection for its American subsidiary, Sulzer Orthopedics, if a $780 million legal settlement is rejected. Sulzer is facing 1,800 lawsuits, 300 in Federal court and 1,500 in various state courts, stemming from the December 2000 recall of its popular Sulzer hip replacement device.
Sulzer recalled over 17,500 artificial hips when the company discovered that an oily substance was inadvertently left on the devices during the manufacturing process. The substance was found on Sulzer's Inter-Op acetabular shell, a component that must bond with the patient's natural bone in order for the device to function properly. Sulzer discovered that the residue prevented such bonding and led to pain in the inner thigh and groin, pain when standing, and difficulty placing weight on the leg.
The company's CEO, Stephan Rietiker, said he would not hesitate to declare bankruptcy, an action that would halt all lawsuits against the corporation and likely decrease the payout to injured patients.
-- Article Courtesy of InjuryBoard.com
More ...
- Sulzer President Fired
- Many People May Have to Undergo Sulzer Hip Replacement
- Judge Approves Sulzer's $1 Billion Settlement Offer
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