As previously disclosed, we are a defendant in thirty-three lawsuits pending in the Circuit Court of Putnam County, West Virginia related to the use of our biologic products by Dr. John King. We have agreed to settle twenty-nine of the thirty-three lawsuits pending against us, all of which are to be funded by our insurance carriers. Some of these settlements are subject to court approval. With regard to the remaining four lawsuits, we believe our legal and factual defenses to these lawsuits are strong, and we will continue to vigorously defend ourselves against these claims. We have product liability insurance which may or may not cover some or all of the ultimate resolution of those remaining claims. While an amount cannot be estimated at this time, management does not believe that the outcome of the remaining lawsuits will have a material adverse effect on our consolidated financial position or results of operations.
One of our insurers has reserved the right to pursue payment from us for up to $7.9 million paid by the insurer along with any additional judgments, settlements and defense costs that may be expended with regard to the four lawsuits that are still pending. We believe that we have strong defenses against any such claim. No provision has been made for these pending cases, settlements or any claim by our insurer as of the date of this report.
