Mon Feb 3, 2014 11:30pm EST
(Reuters) - U.S. medical device maker Biomet Inc will pay at
least $56 million to settle a multi-district lawsuit relating to defective metal hip replacements, a court filing
showed, ending a protracted legal tussle.
The litigation involves Biomet's metal-on-metal
hip replacement device known as M2a Magnum. Hundreds of plaintiffs claimed in various courts
across the country that the hip device led to injuries.
The lawsuits were combined and jointly heard at
the federal court
of Indiana, the state where Biomet is headquartered. The multi-district
litigation began in 2012.
As part of the settlement, Biomet will deposit
$50 million into an escrow account and another $6 million into an attorney fee
fund, the filing showed.
The
agreement with the plaintiffs shall extend to all pending cases, and any future
lawsuit filed in a federal court on or before April 15, 2014.
Plaintiffs who have received a Biomet M2a 38 or
M2a Magnum hip replacement system as part of an initial hip replacement that
was rectified more than 180 days after it was implanted shall receive a base award of $200,000.
Biomet,
however, maintains that the injuries, losses and damages were not due to its
hip implants.
"Plaintiffs and Biomet are mindful of the
uncertainties engendered by litigation and are desirous of settling and
compromising their differences by entering into this settlement
agreement," Judge Robert Miller wrote in his order.
Biomet said in a statement late on Monday that it
is pleased to reach a settlement and resolve the lawsuits.
The case is Biomet M2A Magnum Hip Implant
Products Liability Litigation (MDL 2391), Case No. 12-02391, U.S. District
Court, Northern District of Indiana.
(Reporting by Sakthi Prasad
in Bangalore; Editing by Supriya Kurane)
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