Sulzer Refuses to Increase Settlement Offer
December 4, 2001
Swiss medical device maker Sulzer Medica announced that it would not increase the company's $783 million settlement offer proposed to resolve nearly 1,800 lawsuits stemming from the December 2000 recall of its popular Sulzer hip replacement device. The announcement comes the day before three judges in a U.S. Federal Court of Appeals will decide if plaintiffs can proceed with individual lawsuits against the company.
The company's CEO, Stephan Rietiker, said he would not hesitate to declare bankruptcy if the settlement proposal was rejected. Bankruptcy would halt all lawsuits against the company and likely decrease the eventual payout to injured patients.
Under the current settlement plan, each victim would receive a combination of cash and shares of Sulzer stock totaling $57,500. In addition, the company would reimburse patients for medical and legal costs. Spouses of victims would receive $5,000.
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 residue prevented bonding between a patient's bone and the device, leading to pain in the inner thigh and groin, pain when standing, and difficulty placing weight on the leg.
-- Article Courtesy of InjuryBoard.com
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