Getinge enters into a settlement agreement related to the MDL mesh litigation and makes a concluding provision of additional SEK 600 M
Getinge's subsidiary, Atrium Medical Corporation, has reached a settlement agreement in the U.S. related to surgical mesh product liability, totaling SEK 600 million in provisions plus ongoing litigation costs. The agreement, part of a multidistrict litigation involving approximately 3,200 plaintiffs, is expected to finalize in the first half of 2022. While this settlement does not imply company wrongdoing, Getinge maintains its defense against unresolved claims. The existing provision of SEK 1.8 billion from 2018 will be impacted in Q4 2021 results.
- Settlement agreement puts litigation behind, allowing focus on core business.
- Settlement aims to resolve the majority of 3,200 claims, indicating potential for improved operational clarity.
- Settlement impacts operating results for Q4 2021 due to the provision of SEK 600 million.
- Continued litigation against insurers may incur additional costs.
GOTHENBURG, Sweden, Dec. 9, 2021 /PRNewswire/ -- Getinge's subsidiary Atrium Medical Corporation has entered into a settlement agreement with plaintiffs' lead counsel related to the multidistrict litigation (MDL) linked to surgical mesh product liability in the US. An additional provision of SEK 600 M is made to account for the settlement in addition to litigation expenses incurred to date.
"I am pleased that we can put this behind us and fully focus on our core business, and delivering on our strategy", says Mattias Perjos, President & CEO Getinge.
The settlement agreement was today executed to resolve matters pending in the District Court of New Hampshire, US. The settlement is subject to certain contingencies, including participation by a certain high level of plaintiffs in the MDL. There are currently about 3,200 plaintiffs in the MDL and the settlement aims to maximize the participation rate by the vast majority of claims filed up until November 30, 2021. Getinge expects the settlement to become final and payment to be made during the first half of 2022.
The settlement is not an admission of liability or wrongdoing by the company. Getinge will continue to defend against any litigation that the final agreement does not resolve. Costs for such litigations are not expected to be material. The litigation against the insurers will also continue.
The surgical mesh implants were manufactured by Getinge's subsidiary Atrium Medical Corporation, which was acquired by Getinge in 2011. Getinge made a provision of SEK 1.8 Bn in 2018 for expected costs associated with surgical mesh claims, based on information available at the time. The settlement amount will be funded through available funds. The provision will be reported as an item affecting comparability and it will impact the operating result for Q4 2021.
Phone Conference
A conference call will be held on December 8, 2021, at 7:45-8:15 pm CET hosted by Mattias Perjos, President & CEO, and Lars Sandström, CFO. Please see dial in details below to join the conference:
SE: + 46 8 505 583 65
UK: + 44 333 300 9271
US: + 1 646 722 4902
During the conference call a presentation will be held. To access the presentation through webcast, please use this link: https://tv.streamfabriken.com/press-conference-december-2021
Alternatively, use the following link to download the presentation:
https://www.getinge.com/int/about-us/investors/reports-presentations/
Recording available for 3 years
A recorded version can be accessed for 3 years via https://tv.streamfabriken.com/press-conference-december-2021
Media contact
Anna Appelqvist, VP Corporate Communications
Phone: +46 734 244 527
Email: anna.appelqvist@getinge.com
This information is information that Getinge AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 7.20 pm CET on December 8, 2021.
About Getinge
With a firm belief that every person and community should have access to the best possible care, Getinge provides hospitals and life science institutions with products and solutions aiming to improve clinical results and optimize workflows. The offering includes products and solutions for intensive care, cardiovascular procedures, operating rooms, sterile reprocessing and life science. Getinge employs over 10,000 people worldwide and the products are sold in more than 135 countries.
This information was brought to you by Cision http://news.cision.com
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FAQ
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