Stryker Hip Recall Costs Manufacturer 13 Percent Drop in 1Q Profits
Expenses attached to mounting Stryker hip replacement lawsuits, along with other financial ramifications of the recall issued in July 2012, may have contributed to lower profits seen by the manufacturer in its first quarter, according to Yahoo.com.
On April 25th, 2013, the article reported on Stryker’s 13.1 percent drop in net income to $304 million, which equates to 79 cents per share. If the Stryker hip recall, which affected approximately 20,000 Stryker Rejuvenate and ABG II modular-neck hip stems, was not issued, the company would have earned $1.03 per share. It is estimated that the Stryker hip recall cost approximately $40 million.
In a statement, the manufacturer said revenue from its surgical products fell flat, unlike earnings from its reconstructive device business, which rose 1.2 percent.
It was reported that analysts expected earnings for Stryker to result in $1.01 per share on sales of $2.2 billion.
Will Cost to Defend Stryker Hip Replacement Lawsuits Affect Company Profits?
Right now, the manufacturer is preparing to defend itself in a growing number of Stryker hip replacement lawsuits pending in state and federal U.S. courts. As of April 2013, 145 claims related to the recall had been filed in New Jersey Superior Court in Bergen County on behalf of plaintiffs who say they suffered injuries stemming from Stryker Rejuvenate’s potential to fret and corrode, which may cause adverse tissue reactions.
The following injuries have been named in claims related to the Stryker hip recall:
- pain and/or swelling at the local joint site;
- metallosis; and
- inflammation of the surrounding tissue.
Court records indicate there are at least 30 Stryker hip replacement lawsuits pending in 17 federal jurisdictions in the U.S. as well. It reminds to be seen how costs associated with defending these claims will impact Stryker’s profits for the year.
The manufacturer is optimistic about its full-year 2013 earnings, though, predicting a range of $4.25 and $4.40 per share. According to Yahoo.com, analysts are expecting $4.33 per share.
How to File a Stryker Hip Replacement Lawsuit
If you experienced complications after receiving the now-recalled Stryker Rejuvenate and/or ABG II modular-neck hip stems, you may be eligible to file a claim against the manufacturer. Stryker hip replacement lawsuits seek compensation for medical expenses, lost wages, pain and suffering and other damages. Contact a lawyer at Bernstein Liebhard LLP to learn more about your legal rights at (877) 779-1414.