Stryker will settle four New Jersey lawsuits related to its ABG II and Rejuvenate hip implants for an undisclosed sum. The company expects to pay significant sums of cash to resolve the lawsuits and the hundreds of other similar cases that are still pending litigation. In December, it was disclosed that the company planned to set aside as much as $1 billion for the purpose.
Roughly 20,000 people were implanted with the Rejuvenate and ABG II devices, which were pulled from the market in July 2012. The products were determined to have a high rate of failure and corrosion at the modular-neck junction.
The New Jersey state Supreme Court consolidated lawsuits based in the state, creating one of the largest mass tort cases in the nation. In addition, roughly 400 Stryker lawsuits have been consolidated in Minnesota.
it closed its $1.7 billion purchase of Mako Surgical, gaining access to a line of knee implants and Mako's robot-assisted surgical device for orthopedic procedures.
The litigation is helping to put pressure on Stryker to diversify its product portfolio. The company recently acquired Mako Surgical for $1.7 billion.
Johnson & Johnson has been involved in similar litigation related to its metal-on-metal implants, which have been withdrawn from the market. J&J will pay $2.5 billion to approximately 8000 patients who were treated with the devices.
Biomet is also facing a number of metal-on-metal hip lawsuits. Over 900 Biomet suits have been consolidated in the U.S. District Court in Indiana.
