STOCK TITAN

BD Reaches Agreement to Resolve Vast Majority of Hernia Litigation

Rhea-AI Impact
(Neutral)
Rhea-AI Sentiment
(Neutral)
Tags

BD (NYSE: BDX) has reached an agreement to resolve the majority of its existing hernia litigation, including cases in Rhode Island and Ohio. The settlement amount, which is confidential, falls within the company's current product litigation reserve and will be paid over multiple years. This agreement is structured to eliminate uncertainty for all stakeholders related to the settled cases.

Key points:

  • No admission of liability or wrongdoing by BD
  • Settlement will not impact BD's cash flow goals or capital allocation strategy
  • No incremental charge to BD's consolidated income statement
  • BD will continue to defend itself in unresolved cases

BD emphasizes its commitment to patient safety and product quality, acknowledging that all implantable medical devices carry inherent risks and benefits.

BD (NYSE: BDX) ha raggiunto un accordo per risolvere la maggior parte della sua attuale contenzioso relativo alle ernie, inclusi i casi nel Rhode Island e in Ohio. L'importo della transazione, che è riservato, rientra nella riserva attuale per il contenzioso sui prodotti dell'azienda e sarà pagato su più anni. Questo accordo è strutturato per eliminare l'incertezza per tutti gli stakeholder coinvolti nei casi risolti.

Punti chiave:

  • Nessuna ammissione di responsabilità o illecito da parte di BD
  • La transazione non influenzerà gli obiettivi di flusso di cassa di BD o la strategia di allocazione del capitale
  • Nessun onere incrementale per il bilancio consolidato di BD
  • BD continuerà a difendersi nei casi non risolti

BD sottolinea il suo impegno verso la sicurezza dei pazienti e la qualità dei prodotti, riconoscendo che tutti i dispositivi medici impiantabili comportano rischi e benefici intrinseci.

BD (NYSE: BDX) ha llegado a un acuerdo para resolver la mayor parte de su litigio actual sobre hernias, incluidos los casos en Rhode Island y Ohio. El monto del acuerdo, que es confidencial, se encuentra dentro de la reserva actual de litigios por productos de la empresa y se pagará a lo largo de varios años. Este acuerdo está estructurado para eliminar la incertidumbre para todas las partes interesadas relacionadas con los casos resueltos.

Puntos clave:

  • No hay admisión de responsabilidad o mala conducta por parte de BD
  • El acuerdo no afectará los objetivos de flujo de efectivo de BD ni la estrategia de asignación de capital
  • No habrá carga adicional en el estado de resultados consolidado de BD
  • BD continuará defendiéndose en los casos no resueltos

BD enfatiza su compromiso con la seguridad del paciente y la calidad del producto, reconociendo que todos los dispositivos médicos implantables conllevan riesgos y beneficios inherentes.

BD (NYSE: BDX)는 로드아일랜드와 오하이오에서의 사건을 포함하여 현재의 대부분의 탈장 소송을 해결하기 위한 합의에 도달했습니다. 합의 금액은 기밀이며, 회사의 현재 제품 소송 준비금 범위 내에 있으며 여러 해에 걸쳐 지급될 것입니다. 이 합의는 불확실성을 제거하기 위해 모든 이해관계자에게 구조화되었습니다.

주요 사항:

  • BD의 책임이나 잘못에 대한 인정이 없음
  • 합의는 BD의 현금 흐름 목표나 자본 배분 전략에 영향을 미치지 않음
  • BD의 통합 손익계산서에 대한 추가 비용 발생 없음
  • BD는 미해결 사건에서 계속 방어할 것임

BD는 환자의 안전과 제품 품질에 대한 약속을 강조하며, 모든 이식 가능한 의료기기가 고유한 위험과 이점을 지닌다는 점을 인정합니다.

BD (NYSE: BDX) a conclu un accord pour résoudre la majorité de ses litiges sur les hernies existants, y compris des affaires dans le Rhode Island et l'Ohio. Le montant du règlement, qui est confidentiel, fait partie de la réserve actuelle de litiges sur les produits de l'entreprise et sera payé sur plusieurs années. Cet accord est structuré pour éliminer l'incertitude pour toutes les parties prenantes concernées par les affaires réglées.

Points clés :

  • Aucune admission de responsabilité ou de méfait de la part de BD
  • Le règlement n'affectera pas les objectifs de liquidité ou la stratégie d'allocation de capital de BD
  • Aucun coût supplémentaire sur le compte de résultat consolidé de BD
  • BD continuera de se défendre dans les affaires non résolues

BD souligne son engagement envers la sécurité des patients et la qualité des produits, reconnaissant que tous les dispositifs médicaux implantables comportent des risques et des avantages inhérents.

BD (NYSE: BDX) hat eine Vereinbarung getroffen, um den Großteil seines bestehenden Hernienrechtsstreits zu lösen, einschließlich der Fälle in Rhode Island und Ohio. Der Vergleichsbetrag, der vertraulich ist, fällt in die aktuelle Rückstellung des Unternehmens für Produkthaftung und wird über mehrere Jahre gezahlt. Diese Vereinbarung ist so strukturiert, dass sie Unklarheiten beseitigt für alle Beteiligten, die mit den beigelegten Fällen in Verbindung stehen.

Wichtige Punkte:

  • Keine Anerkennung von Haftung oder Fehlverhalten durch BD
  • Der Vergleich hat keine Auswirkungen auf die Cashflow-Ziele von BD oder die Kapitalallokationsstrategie
  • Keine zusätzlichen Kosten für die konsolidierte Gewinn- und Verlustrechnung von BD
  • BD wird sich weiterhin in ungeklärten Fällen verteidigen

BD betont sein Engagement für die Patientensicherheit und Produktqualität und erkennt an, dass alle implantierbaren medizinischen Geräte inhärente Risiken und Vorteile mit sich bringen.

Positive
  • Settlement amount within current product litigation reserve
  • No incremental charge to consolidated income statement
  • Settlement will not affect cash flow goals or capital allocation strategy
  • Resolution of vast majority of hernia litigation cases
Negative
  • Ongoing litigation for cases not resolved through this agreement
  • Multi-year payment structure for settlement

Insights

This settlement agreement is a significant development for BD, resolving a major portion of its hernia litigation. The key points to consider are:

  • The settlement amount is within the company's current product litigation reserve, indicating prudent financial planning.
  • There will be no additional charge to BD's income statement, preserving the company's financial performance metrics.
  • The multi-year payment structure aligns with BD's cash flow goals and capital allocation strategy, suggesting minimal disruption to financial operations.
  • By resolving the majority of cases, BD reduces uncertainty and potential future legal costs, which is generally viewed positively by investors.
  • The absence of admission of liability or wrongdoing helps protect BD's reputation and may limit exposure in remaining cases.

While the settlement resolves a significant liability, investors should monitor any impact on BD's future product development and sales in the hernia product segment. Overall, this agreement appears to be a net positive for BD, providing clarity and stability to its financial outlook.

This settlement is a strategic legal move for BD with several important implications:

  • Resolving the "vast majority" of hernia litigation cases significantly reduces BD's legal exposure and potential future liabilities.
  • The confidential nature of the settlement terms is common in such agreements and protects BD from setting public precedents for remaining or future cases.
  • By settling without admitting liability or wrongdoing, BD maintains a stronger position for defending remaining cases and protects its brand integrity.
  • The multi-district litigation (MDL) resolution suggests efficiency in handling complex product liability cases across jurisdictions.
  • BD's statement about continuing to defend itself vigorously in unsettled cases indicates a balanced approach of settlement and litigation strategies.

This agreement likely provides relief to shareholders concerned about ongoing legal risks. However, it's important to monitor how this settlement might influence regulatory scrutiny or impact future product liability cases in the medical device industry.

  • No admission of liability or wrongdoing; settlement structured to eliminate uncertainty for all stakeholders related to settled cases.
  • Settlement amount within current product litigation reserve and will be paid out over a multi-year period.
  • Settlement will not change BD's cash flow goals or capital allocation strategy.

FRANKLIN LAKES, N.J., Oct. 2, 2024 /PRNewswire/ -- BD (Becton, Dickinson and Company) (NYSE: BDX), a leading global medical technology company, today announced it has reached an agreement to resolve the vast majority of its existing hernia litigation.

Terms of the settlement agreement, which are confidential, include cases in both the Rhode Island consolidated litigation and the federal multidistrict litigation in Ohio. The aggregate amount payable pursuant to this settlement is within the company's current product litigation reserve for this matter and will be paid out over a multi-year period. As a result, the settlement amount is already recorded as a liability within BD's consolidated balance sheet and the agreement will not result in an incremental charge to the company's consolidated income statement. BD believes this agreement is in the best interest of all parties and is structured to eliminate uncertainty for all stakeholders related to the settled cases.  The hernia mass tort litigation represents a large majority of BD's total product litigation reserve.

The multi-year payment structure was contemplated as part of the company's cash flow planning process and was included in its previously communicated free cash flow goals and capital allocation strategy.

The settlement does not include any admission of liability or wrongdoing, and BD continues to dispute the allegations in these matters. The company will continue to vigorously defend itself in cases not resolved through this agreement.

Patient safety and product quality are top priorities at BD. All implantable medical devices carry inherent risks and provide significant clinical benefits. BD is confident in both the design of its products and fulfilling its obligation to provide information about both the risks and the benefits of its products, enabling physicians, in consultation with their patients, to determine whether those benefits outweigh the potential risks in a particular instance.

About BD
BD is one of the largest global medical technology companies in the world and is advancing the world of health by improving medical discovery, diagnostics and the delivery of care. The company supports the heroes on the frontlines of health care by developing innovative technology, services and solutions that help advance both clinical therapy for patients and clinical process for health care providers. BD and its more than 70,000 employees have a passion and commitment to help enhance the safety and efficiency of clinicians' care delivery process, enable laboratory scientists to accurately detect disease and advance researchers' capabilities to develop the next generation of diagnostics and therapeutics. BD has a presence in virtually every country and partners with organizations around the world to address some of the most challenging global health issues. By working in close collaboration with customers, BD can help enhance outcomes, lower costs, increase efficiencies, improve safety and expand access to health care. For more information on BD, please visit bd.com or connect with us on LinkedIn at www.linkedin.com/company/bd1/, X (formerly Twitter) @BDandCo or Instagram @becton_dickinson

Forward Looking Statements
This press release contains forward-looking statements (as defined under Federal securities laws) regarding the hernia mass tort litigation settlement, including statements regarding the potential impact of the settlement on the existing litigation relating to the products that are the subject of the settlement. These statements may be identified by words such as "believes", "will" and other similar expressions. Forward-looking statements are based on management's current expectations, estimates, assumptions, and projections, and are subject to significant uncertainties and other factors, many of which are beyond BD's control.  Factors that could cause actual results to differ materially include, but are not limited to, whether the anticipated level of participation by plaintiffs in the settlement will be achieved or will fall below the level that would permit BD to terminate the settlement, the number of claims made by plaintiffs that decline to participate in the settlement, whether the settlement is appealed or challenged, the filing of future claims by plaintiffs that are not covered by the settlement, and the impact or outcome of any pending or future litigation relating to the products that are the subject of the settlement.  BD is subject to additional risks and uncertainties as described in BD's latest Annual Report on Form 10-K and other filings with the Securities and Exchange Commission.  BD does not intend to update any forward-looking statements to reflect events or circumstances after the date hereof except as required by applicable laws or regulations.

Contacts:                         




Media:                               

Investors:

Troy Kirkpatrick                   

Adam Reiffe

VP, Public Relations           

Sr. Director, Investor Relations

858.617.2361                       

201.847.6927  

troy.kirkpatrick@bd.com       

adam.reiffe@bd.com  

   

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/bd-reaches-agreement-to-resolve-vast-majority-of-hernia-litigation-302265854.html

SOURCE BD (Becton, Dickinson and Company)

FAQ

What is the financial impact of BD's hernia litigation settlement on its stock (BDX)?

The settlement amount is within BD's current product litigation reserve and will not result in an incremental charge to the company's consolidated income statement. It also will not affect BD's cash flow goals or capital allocation strategy.

Does BD (BDX) admit liability in the hernia litigation settlement?

No, the settlement does not include any admission of liability or wrongdoing by BD. The company continues to dispute the allegations in these matters.

How will BD (BDX) pay the hernia litigation settlement?

The settlement amount will be paid out over a multi-year period, which was contemplated in BD's cash flow planning process and included in its previously communicated free cash flow goals.

What percentage of BD's (BDX) hernia litigation cases does this settlement resolve?

The settlement resolves the vast majority of BD's existing hernia litigation, including cases in both the Rhode Island consolidated litigation and the federal multidistrict litigation in Ohio.

Becton, Dickinson and Co.

NYSE:BDX

BDX Rankings

BDX Latest News

BDX Stock Data

66.05B
289.04M
0.28%
90.84%
0.83%
Medical Instruments & Supplies
Surgical & Medical Instruments & Apparatus
Link
United States of America
FRANKLIN LAKES