$114 Million Cardiac Defibrillator Settlement
Medtronic, Inc. has entered into an agreement to settle lawsuits relating to its Marquis line of implanted cardiac defibrillators.
Under terms of the product liability settlement, Medtronic has agreed to settle 2,682 cases for $95.6 million plus $18.5 million in attorneys' fees. The parties filed joint requests for termination of the Multi-District Litigation proceedings related to the Marquis devices, as well as requests for dismissal of the cases. The product liability settlement can be terminated if the MDL proceedings are not terminated.
The cases in the settlement are those arising from the February 2005 Marquis device recall, including cases currently filed either in the MDL or in state courts and claims that could have been filed. All settling plaintiffs must satisfy any insurance claims and interests of Medicare or Medicaid from their settlement payments.
Medtronic will reflect the Marquis device settlements as a one-time charge to its third quarter earnings, ending in January 2008.
The parties have not admitted any liability or the validity of any defenses in the litigation.
Reference:
"Settlement will cost Medtronic $114MMemphis Business Journal," Memphis Business Journal, December 2007.
