Biomet Inc. has announced that it has reached a settlement in MDL 2391. The lawsuit was filed in response to the complaints related to the company’s M2-a Magnum hip replacement. The case was heard in the United States District Court for the Northern District of Indiana, South Bend Division. Judge Robert L. Miller Jr. approved the settlement of the MDL.
The metal implant is similar to DePuy’s ASR hip implants, which have been recalled and scrutinized for their “high failure rate” and risks of serious side effects.
Those filing against Biomet claim that the friction from the metal components in the implant, which are comprised of chromium and cobalt, can release metal into the bloodstream and tissue. The company has reportedly agreed to pay a base rate of $200,000 to each person who has received the implant.
On Feb. 3, the company issued a press release announcing the settlement of the Multi-District Litigation entitled MDL 2391 – In Re: Biomet M2A Magnum Hip Implant Product Liability Litigation. As of Jan. 31, there were 1012 lawsuits pending in the MDL. According to court documents, additional lawsuits filed in the MDL by April 15, may participate in the settlement.
Biomet continues to evaluate the inventory of lawsuits in the MDL pursuant to the categories and procedures set forth in the settlement agreement.
The final amount of payments under the settlement is uncertain. However, the company believes that the payments under the settlement will exhaust the company’s self-insured retention under its insurance program, which is $50 million, equal to the Company’s current accrual for contingencies for claims associated with metal-on-metal hip products. If this should occur, the Company would have an insurance claim for the amount by which ultimate losses under the settlement exceed the self-insured retention amount. Biomet maintains $100 million of third-party insurance coverage.
The company’s insurance carriers have been placed on notice of the claims that are subject to the settlement, and have been placed on notice of the terms of the settlement. Court documents note that it is probable that it would receive from its insurance carriers the full amount by which the ultimate losses under the settlement exceed $50 million.
Biomet stated in it’s press release that the company is “pleased to have reached this settlement and have the MDL resolved.” The company also stated that it “appreciates the guidance provided by Judge Miller to bring this litigation to an expeditious and efficient resolution”