Getinge Settles MDL Mesh Litigation

Getinge’s subsidiary Atrium Medical Corporation has entered into a settlement agreement with plaintiffs’ lead counsel related to the multidistrict litigation (MDL) linked to surgical mesh product liability in the U.S. An additional provision of SEK 600 M is made to account for the settlement in addition to litigation expenses incurred to date.
 
“I am pleased that we can put this behind us and fully focus on our core business, and delivering on our strategy,” said Mattias Perjos, president and CEO of Getinge.
 
The settlement agreement was today executed to resolve matters pending in the District Court of New Hampshire. The settlement is subject to certain contingencies, including participation by a certain high level of plaintiffs in the MDL. There are currently about 3,200 plaintiffs in the MDL and the settlement aims to maximize the participation rate by the vast majority of claims filed up until November 30, 2021. Getinge expects the settlement to become final and payment to be made during the first half of 2022.
 
The settlement is not an admission of liability or wrongdoing by the company. Getinge will continue to defend against any litigation that the final agreement does not resolve. Costs for such litigations are not expected to be material. The litigation against the insurers will also continue.
 
The surgical mesh implants were manufactured by Getinge’s subsidiary Atrium Medical Corporation, which was acquired by Getinge in 2011. Getinge made a provision of SEK 1.8B in 2018 for expected costs associated with surgical mesh claims, based on information available at the time. The settlement amount will be funded through available funds. The provision will be reported as an item affecting comparability and it will impact the operating result for Q4 2021.