October 31, 2014 by Brad Perriello
A federal judge rules that TIG Insurance Co. owes Stryker Corp. nearly $8 million to cover deals the orthopedics company made to settle product liability lawsuits concerning its Duracon Uni-Knee implants.
Stryker (NYSE:SYK) can recoup from an insurer the $7.6 million it paid out to cover settlements in product liability lawsuits over its Duracon Uni-Knee implants, a federal judge ruled yesterday.
Stryker acquired the Duracon Uni-Knee with its $1.9 billion buyout of Howmedica from Pfizer (NYSE:PFE) in 1998. Stryker ended up paying out $7.62 million to settle the liability suits after problems with the implant surfaced, suing XL Insurance America and TIG Insurance Co. to cover its losses.
Kalamazoo, Mich.-based Stryker won the 1st lawsuit after the court ruled that XLIA “breached its duty to defend and indemnify plaintiffs in connection with the Uni-Knee claims,” according to court documents. A $27.1 million judgment was awarded to Pfizer and Stryker in September 2010 and was upheld on appeal, according to the documents.
