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Saturday, May 3, 2014

Endo to Pay $830 Million to Settle Majority of Vaginal Mesh Legal Claims

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Endo Health Solutions Inc. disclosed it intends to pay about $830 million pretax to settle a "substantial majority" of legal claims that alleged vaginal mesh inserts led to injuries.
Endo and other medical manufacturers have been hit with lawsuits after injuries linked to vaginal mesh inserts raised safety concerns. Vaginal mesh products are intended to treat pelvic organ prolapse as well as urinary incontinence.
Endo entered the market after its 2011 acquisition of urology-product unit American Medical Systems Holding Inc., which manufacturers the products.
On Wednesday, Endo said the settlement would resolve about 20,000 claims related to the vaginal mesh products sold by American Medical.
The agreements are not an admission of liability or fault, Endo said, adding individual plaintiffs' law firms must fulfill certain requirements to receive a portion of the settlement, including verification of an implant and other pertinent medical records.
Endo previously established a product liability reserve of about $520 million in connection with the pending claims at the time. Based on the settlement agreements announced on Wednesday, the company said it would incur an incremental pretax, noncash charge of about $625 million in the first quarter of this year, increasing the liability accrual to about $1.1 billion.
The company expects total accrual payments to occur throughout 2016.
Shares of Endo, which is due to release first-quarter results on May 1, were unchanged after...
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