On Nov. 1, Wright Medical Technology Inc. entered into a master settlement agreement with attorneys representing plaintiffs in previously disclosed metal-on-metal hip multidistrict litigation, according to a company press release.
The metal-on-metal hip litigation is known as MDL no. 2329 (MDL), and the consolidated proceeding pending in state court in California is known as Judicial Council Coordination Proceeding No. 4710 (JCCP).
Under the terms of the master settlement agreement (MSA), all parties have agreed to settle 1,292 specifically identified Conserve, Dynasty or Lineage revision claims. These claims meet the eligibility requirements of the MSA and are pending in the MDL or JCCP, or are subject to tolling agreements approved in the MDL or JCCP for a total settlement of $240 million. Of this amount, $180 million will be funded from cash on hand and $60 million will be funded from insurance recoveries, according to the release.
To be eligible, the MSA states the following: the claimant has a pending or tolled case in the MDL or JCCP; the claimant has undergone a revision surgery within 8 years of the initial implantation surgery; and the claim has not been identified by Wright Medical Technology as having potential statute of limitation issues.
In addition, Wright Medical Technology has agreed to escrow $150 million to secure its obligations under the MSA and Wright Medical Group N.V. has agreed to guarantee Wright Medical Technology’s obligations under the MSA, the press release reported.