Hip Manufacturer Owes Last Year’s Earnings Drop to 2012 Stryker Recall
A top U.S. medical device manufacturer is still feeling the effects of a Stryker hip recall issued almost three years ago, as litigation costs that piled up in its aftermath continued to be reflected in its most recent earnings report.
According to a report from MLive.com, Stryker Corp. reported net earnings of $260 million for the fourth quarter of 2014, down 32.6 percent from the year before. The company’s earnings were also logged at 67 cents per diluted share for the period ending on December 31, 2014, which represented a 33.7 percent decrease, comparatively. Stryker also reported some good news—for the full year, net sales were found to be $9.65 billion, up 6.1 percent from 2013.
Manufacturer Pays to Resolve Stryker Recall Matters
Although the company did not say specifically how the Stryker recall, which affected approximately 20,000 of its Rejuvenate and ABG II modular-neck hip stems in July 2012, fit into its most recent earnings report, officials did mention having to handle certain regulatory and legal matters. As of January 2015, court documents reflected nearly 2,200 lawsuits pending in a consolidated litigation underway in New Jersey Superior Court that allege pain, swelling, loss of mobility and other symptoms associated with metallosis (metal ion poisoning) caused by the Rejuvenate and ABG II metal hips. In November 2014, a settlement was proposed in the Bergen County court that could resolve many of the lawsuits not only filed in that jurisdiction, but also in a federal multidistrict litigation (MDL) established in the U.S. District Court, Southern District of New York. Terms of the settlement indicate that plaintiffs eligible to participate may receive $300,000 per failed implant, which could vary depending on the particulars of each case. A court update on January 15th indicates that some 2,270 Stryker lawsuits are now pending in New York federal court.
All the lawsuits that may be eligible to participate in Stryker’s recently proposed settlement allege the hip manufacturer’s failure to warn about the Rejuvenate and ABG II implants’ potential to fret and corrode at their modular-neck junctions. In turn, this could increase the patient’s risk for complications that often require their device to be removed via revision surgery.
Call a Stryker Lawyer
If you’re considering a Stryker lawsuit, don’t hesitate to call an attorney at our Firm who may be able to help you file a claim against the metal hip manufacturer. Contact us now at (877) 779-1414.