The Swiss medical devices firm, Centerpulse, has reached an agreement with 16 patients who had opted out of a class action settlement.This content was published on November 6, 2002 - 11:32
The move marks the end of a lengthy litigation battle over faulty joint implants that had cast a shadow over the Zurich-based company.
The 16 patients had all undergone replacement surgery, but had refused until now to take part in the settlement.
According to Centerpulse, there are still 43 claims pending from patients who did not need extra surgery.
The company said, however, that amounts paid out to patients who need replacement surgery exceed by far those handed over to these so-called non-revision patients.
The company added in a statement that all existing claims, settled or not, were covered by provisions set aside for product liability issues.
Centerpulse announced on Monday that it had transferred $725 million (SFr1.1 billion) to a trust representing victims of faulty hip and knee implants in the United States.
Around 3,700 patients will receive on average $200,000.
Formerly known as Sulzer Medica, the company handed over the sum to the Settlement Trust in Cleveland, Ohio, fulfilling its obligations to class-action plaintiffs.
The trust will pay out compensation over the coming months to patients who were affected by the faulty joints.
Centerpulse recalled thousands of implants in December 2000 after a manufacturing problem contaminated them with oily residue, preventing them from bonding with the patients' bones.
Thousands of mainly elderly people were affected by the faulty implants, denting the company's image in the US and weakening its share value.
The settlement saw Centerpulse register a SFr29 billion loss in 2001. However, the company's fortunes have rebounded since then, with a SFr94.8 million net profit recorded for the first half of 2002.
Back to business
Centerpulse said the closure of the litigation procedure would allow the firm to concentrate its full attention on its ongoing business.
"We can now focus our collective strength on our current business affairs and on the further development of our company," said chairman and CEO, Dr Max Link.
He added that he was pleased that the affected patients would be receiving compensation.
In September the company announced that it was issuing SFr225 million in new stock to help fund the settlement.
It said that its biggest shareholder, InCentive Capital, would underwrite the capital increase by taking up to 78 per cent of the shares. The remaining 22 per cent is being underwritten by Switzerland's largest bank, UBS.
swissinfo with agencies
The money will compensate patients who were affected by the faulty implants.
Centerpulse recalled thousands of implants in December 2000.
The resulting litigation severely damaged the company's image in the US.
The company issued new stock in September to help fund the settlement.
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