Breaking News! Endo Settles Some AMS Vaginal Mesh Cases for $55 Million

Jun 21st, 2013 | By | Category: Feature
Apogee for POP, AMS

Apogee for POP, AMS

June 21, 2013 ~ Endo Health Solutions Inc. unit has agreed to pay $54.5 million to settle some product liability lawsuits filed by women who were implanted with the Perigee, Apogee and Elevate transvaginal mesh.

The women claim they were injured by the polypropylene mesh implants and call the transvaginal mesh a defective product. The settlement, revealed in a securities filing Thursday, does not say how many lawsuits will be resolved, reports Bloomberg News (here).

Those cases settled are being handled by David Matthews, a Houston-based attorney (here) who had filed the cases in both state and federal court.

Endo Health purchased American Medical Systems (AMS) in 2011 for $2.9 billion and with it some of its debt, including the pending product liability lawsuits.  AMS plans to “vigorously defend themselves in the remaining mesh product liability cases and in any new cases that may arise,” according to company officials in a statement filed with the Securities and Exchange Commission.

As of June 12, AMS was facing 7,385 lawsuits that had been consolidated in the West Virginia multidistrict litigation. Here is the MDND back story:

Endo, based in Chadds Ford, Pa, is one of six companies facing about 29,000 lawsuits calling the commonly implanted polypropylene mesh a defective product.

MDND reported on the Marion Carpenter case naming American Medical Systems which was was delayed until early next year. See back story here.

In April 2012, American Medical Systems Inc. filed its Position Statement with the federal court in West Virginia laying out its defense strategy in facing the POP and SUI cases. At that time there were 318 cases filed against AMS.

Last June C.R. Bard lost a product liability lawsuit in California over its Avaulta mesh and was ordered to pay $3.6 million to Christine Scott and her husband. In that case, her doctor was also sued and ordered to pay $1.5 million. Bard is appealing the award.

In February, Ethicon, a division of Johnson & Johnson, lost a product liability lawsuit filed in New Jersey wnd was ordered to pay $11.1 million in including $3,35 million in punitive damages to a South Dakota woman implanted with the Prolift prolapsed mesh.

StreetInsider.com (here) has the entire filing statement:

   “As previously reported, since 2008, our wholly-owned subsidiary American Medical Systems, Inc. (“AMS”), and more recently, in certain cases the Registrant or certain of its subsidiaries, have been named as defendants in multiple lawsuits in various federal and state courts, as well as in Canada, alleging personal injury resulting from the use of transvaginal surgical mesh products designed to treat pelvic organ prolapse and stress urinary incontinence. See “Legal Proceedings” in Note 12 of Notes to Condensed Consolidated Financial Statements in the Company’s Report on Form 10-Q for the quarter ended March 31, 2013.

“On June 14, 2013, AMS and certain plaintiffs’ counsel representing mesh-related product liability claimants entered into a definitive Master Settlement Agreement (the “Agreement”) regarding a set inventory of filed and unfiled mesh cases handled or controlled by the participating counsel. The Agreement was entered into solely by way of compromise and settlement and is not in any way an admission of liability or fault by the Company or AMS. The Company and AMS intend to continue to vigorously defend themselves in the remaining mesh product liability cases and in any new cases that may arise.

“Under the terms of the Agreement, AMS will pay $54.5 million into a settlement fund held in escrow by a mutually agreed upon escrow agent, on or before July 15, 2013. The Agreement establishes a claims administration process that includes guidelines and procedures for administering the settlement. The Agreement and the distribution of funds to participating claimants are conditioned upon, among other things, AMS obtaining full releases from no fewer than 95% of the claimants covered by the Agreement within 120 days of the Agreement’s execution. If the above-noted 95% plaintiff participation threshold is not reached by October 12, 2013, AMS may terminate the settlement program and have the escrowed $54.5 million repaid to it.

“Distribution of funds to any individual is conditioned upon a full release and a dismissal with prejudice of the entire action or claim as to all AMS parties and affiliates. Prior to receiving an award, an individual claimant shall represent and warrant that liens, assignment rights, or other claims that are identified in the claims administration process have been or will be satisfied by the individual claimant. The amount of settlement awards to participating claimants, the claims evaluation process and procedures used in conjunction with award distributions, and the negotiations leading to the settlement shall be kept confidential by all parties and their counsel.”

 

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16 Comments to “Breaking News! Endo Settles Some AMS Vaginal Mesh Cases for $55 Million”

  1. Paula says:

    WHOOP……..WHOOP……. Finally some justice for our suffering and destructive life altering conditions.

  2. Melynda says:

    I am so thrilled for these woman and so pleased with Endo Pharma for doing the right thing for these woman.

  3. InAz says:

    I am not sure this settlement amount should be considered an adequate winning amount. Since it does mention how many women are to receive from this escrow account. It seems likea high number but if it is supposed to be shared between 300 plus victims and their lawyers, then that is not much of a settlement for all those sufferers.

  4. meemers says:

    It’s hard to tell if once broken down it will even cover medical costs per injured.

  5. Still suffering says:

    There are over 6,000 cases filed against AMS. Figure on paying your attorney close to 50%. If you have insurance, then they want all their money back, so what are the plaintiffs left with?

  6. Daniel says:

    That’s good new for patient. The product still do not recall outside of United Stetes. Many patient will be hurt. C. R. Bard also have corrupt activity in China. Please pay attention on that:

    The corrupt activity of Vice president of C.R. Bard in China.
    Bard China is a subsidiary company of C. R. BARD. The headquarters of C. R. Bard is in New Jersey. The Corporate senior vice president, name is John Deford, he had a visiting activity in hospital of China when he visits in Shanghai on 9th May, 2013, and he gave gifts (price more than $100 USD, that’s two of Tiffany gifts) to a physician during visiting time, and the physician immediately used the product (name Lifestent vascular stent, price above $3,000USD) of Bard Company for patient at that time. After the visiting, he gave others gifts to marketing manager of Bard China, and let the marketing manager give those gifts to the other physician. I think that his behavior violate the FCPA and laws of China.

  7. Jordana says:

    Yeah, how much for each person? It’s a promising development for those who are, like me, putting off a corrective surgery (this will be my fourth) until we get some money to help offset costs, but if it’s divided among hundreds of people…I also don’t like the fact that it has to be agreed upon by 95% of the affected claimants. That doesn’t sound like MDL – it sounds like class action.

  8. Jan s Varnes says:

    So , what I am hearing is distressing however it is a hopeful payment for the surgery after all time is not something you can recover . However damages are great because not one of us will be the same again ….
    If ever a surgery is presented to me again I will make sure ample time and research is already done ! This did not happen according to many participants physicians included !

  9. Follow the money. Prior to joining Tornier, (a Minnesota producer of orthopedic joint implants), Mr. Douglas Kohrs served as Chief Executive Officer of American Medical Systems Holdings, (Minnesota headquarters) Inc. from April 1999 until January 2005. He served on the board of directors of American Medical Systems Holdings from 1999 to May 2006, and served as chairman of the board from March 2004 to May 2006. May 18, 2012 he reportedly was making more than $2.6 million at Tornier after he was given a 59% pay raise. He retired abruptly at age 56 on November 12, 2012 and has already begun a new venture in the implanted medical device industry. Financial entitlements and incentives encourage medical device executives to knowingly impose preventable patient harm without corporate or personal accountability. Lawsuits indicate catastrophic system failure and do not restore the health of harmed patients or guarantee others will not be similarly harmed in the future. Follow the money.

  10. Bejah says:

    And now we know that the percentage of the amount the plantiffs are to each receive will (probably?) be also subject to a state tax that allows states to take a percentage of the punitive damages…in many states 75%! And evidently plantiffs attorneys then get 25% of that 75% if I understand this criminal law correctly. One question I have then is what of the financial contract the plantiff has with her counsel…is this 25% attorneys get on top of the percentage the plantiff is paying them so then plantiffs counsel gets lets say 40% of the award for punitive damages per their agreement and then another 25% of the states 75%? Can someone clarify this please? Can it be as bad as it sounds?

    What then is the value of punitive damages and what, one might ask, is the value of human life if the plantiff who was wronged is not even left with enough funds to cover probable lifelong medical costs? Remembe we do each have a lifetime cap on medical coverage and ongoing surgeries make that a key cost center in ones future life…and given the ever esclating cost of living, and inability to depend onthe stability of health insurance policies, Social Security, Medicare, etc. creates a picture of profound injustice, especially for those of us who are retired as well as those who are similarly disadvantaged. I think the Federal Gov’t needs to step in and state that these split award laws are indeed unconstitutional as they stand. We need to list all states on one of the websites for prolene mesh victims….and show a table that clearly states what the percentages of punitive damages are that each state takes from people. We need to know so that when we make arrangements with counsel we are informed and when we discuss and/or agree to any settlement our decision takes that into consideration. Evidently attorneys are not advising people of these laws. That too is troubling. It is very disheartening to think the whole world is on the take.

  11. candy salvo says:

    im still waiting on my money! im only 35yrs old and have the physical body of a 70yr since the mesh was put in me, I was far to young to have this done! candy from augusta, ga!

  12. Linda says:

    54 million is a drop in the bucket compared to the number of women that have been harmed. If each one got a100K, that would not be nearly worth the pain and suffering they indured, not to mention the life change that takes place.

  13. I haven’t got my claim to Court yet,been 2 years in pain still going to the doctor.my lawyers don’t tell. Me ugh know they get45%.I get pain infections lost the me I was,I was great, life as I knew it is over cry every day,can’t sleep, nightmares pain wake me every hour. Tired all the time.thought of suicide as way out of pain,could take years to get settlement to help better life.hell torched within prison inside me of pain.monster needs removed. I pray for a medical my freedom within back, being punished for no reason this is downright inhumane

  14. Richard M Howden(AMU) says:

    I wonder whether AMS will do as Bard has done. They will do this settlement and then say they have done enough and no more settlements will be coming. Thus ending any other victims hope for a “large, substantial settlement” from this particular manufacturer.

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We hope you find this a helpful resource. National News Editor, Jane Akre, began MDND with the hope of providing the latest news, information and perspective from the regulatory, industry and patient point of view, something that goes under-reported in much of the coverage of medical devices. The public is just now becoming aware that many devices do not undergo the same scrutiny as prescription drugs and are instead grandfathered in under an FDA loophole that has gone largely unchanged since the 1970s. As a result, patients become the post-market clinical trial subjects, and many suffer devastating and permanent injuries.