Financial

Stryker settles shareholder suits for $1.5M

Amid mounting suits over its recalled hip implants, Stryker ($SYK) has brought an end to one of its other legal battles. The Kalamazoo, MI, devicemaker has agreed to fork over $1.5 million in legal fees to settle two lawsuits, also pledging to reform some of its policies.

The suits were filed by shareholders in 2010, MassDevice reports, and Stryker is admitting no wrongdoing but has agreed to amend its policies to avoid future regulatory and legal problems like those it has faced over the past few years, including FDA warning letters over its hip implant production and recalls affecting the Rejuvenate and Trident devices.

As part of the settlement, Stryker will also set up committee to prevent violations of the False Claims Act and the Foreign Corrupt Practices Act, the website reports.

If all goes according to plan, the changes will help Stryker avoid further woes over faulty devices and manufacturing methods that run afoul of the FDA, but that doesn’t solve the company’s current legal troubles.

Stryker is facing 8 lawsuits over its recalled Rejuvenate implants, with patients seeking damages and claiming that the devices contaminated their blood. The company also faces an investigation in California, where authorities allege that Stryker was complicit in an illegal test of its bone-growth putty.

– read the MassDevice story

Read more: Stryker settles shareholder suits for $1.5M – FierceMedicalDevices http://www.fiercemedicaldevices.com/story/stryker-settles-shareholder-suits-15m/2012-09-24#ixzz27apaKl9O
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Josh Sandberg

Josh Sandberg is the President of Ortho Spine Partners and Partner for The De Angelis Group. He also serves as Co-Founder and Editor of OrthoSpineNews.

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