Stryker announces settlement agreement

Stryker Orthopaedics has announced a settlement agreement between the company and representatives of Rejuvenate modular-neck and ABG II modular-neck hip stem plaintiffs.

Under the terms of the agreement, which follows an early mediation program to resolve multiple claims at both state and federal levels, Stryker Orthopaedics will compensate eligible domestic patients who had revision surgery to replace their Rejuvenate or ABG II Modular-Neck hip stem prior to Nov. 3, 2014.

“The health and well-being of patients is Stryker's top priority,” Bill Huffnagle, president of Stryker Orthopaedics’ reconstructive division, stated in a company press release. “Following our voluntary recall and our patient support program for recall related care, this settlement program provides patients compensation in a fair, timely and efficient manner.”

According to the release, Stryker Corporation has recorded charges to earnings totaling $1.425 billion, which represents the actuarially determined low end of the range of probable loss to resolve the matters and no additional charge to earnings has been recorded in connection with entering into the settlement agreement. The final cost to entirely resolve the matters are difficult to predict and may be different than the amounts accrued to date, according to the release, and further earning charges may be recorded as additional information about patient enrollment in the settlement program becomes available.

Eligible patients have until March 2, 2015 to file claims for payment in relation to the settlement agreement. The majority of payments made based on this agreement are expected to be completed by the end of 2015.