Covidien logs $180M charge over pelvic mesh lawsuits
July 11, 2014 by Brad Perriello
Covidien says its exposure to a raft of product liability lawsuits filed over pelvic mesh products increased by some $131 million during its fiscal 3rd quarter.
Covidien logs $180M charge over pelvic mesh lawsuits
Covidien (NYSE:COV) said today that its exposure to the thousands of product liability lawsuits filed over pelvic mesh products increased by some $131 million during its fiscal 3rd quarter.
Covidien said 2 of its subsidiaries "have supplied pelvic mesh products to 1 of the manufacturers named in the litigation," noting that it's indemnified that manufacturer against certain of the personal injury claims in the lawsuits. Covidien has said in the past that supplies mesh products to C.R. Bard (NYSE:BCR) for use in pelvic mesh products.
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"During the quarter ended June 27, 2014, Covidien received additional information regarding the nature of products liability claims and potential exposure based on access to medical records, discussions with plaintiff attorneys and settlements by other manufacturers. Accordingly, Covidien recorded a pre-tax legal charge of approximately $180 million in the 3rd quarter of fiscal 2014," according to a regulatory filing.
During fiscal 2012, Covidien recorded legal charges of $49 million, net of insurance recoveries, related to its indemnification of Bard, the company said last year.
As of March 28, there were roughly 6,000 cases pending "believed to involve products manufactured by company subsidiaries," Covidien said in a separate filing.
July 11, 2014 by Brad Perriello
Covidien says its exposure to a raft of product liability lawsuits filed over pelvic mesh products increased by some $131 million during its fiscal 3rd quarter.
Covidien logs $180M charge over pelvic mesh lawsuits
Covidien (NYSE:COV) said today that its exposure to the thousands of product liability lawsuits filed over pelvic mesh products increased by some $131 million during its fiscal 3rd quarter.
Covidien said 2 of its subsidiaries "have supplied pelvic mesh products to 1 of the manufacturers named in the litigation," noting that it's indemnified that manufacturer against certain of the personal injury claims in the lawsuits. Covidien has said in the past that supplies mesh products to C.R. Bard (NYSE:BCR) for use in pelvic mesh products.
Sign up to get our free newsletters delivered straight to your inbox
"During the quarter ended June 27, 2014, Covidien received additional information regarding the nature of products liability claims and potential exposure based on access to medical records, discussions with plaintiff attorneys and settlements by other manufacturers. Accordingly, Covidien recorded a pre-tax legal charge of approximately $180 million in the 3rd quarter of fiscal 2014," according to a regulatory filing.
During fiscal 2012, Covidien recorded legal charges of $49 million, net of insurance recoveries, related to its indemnification of Bard, the company said last year.
As of March 28, there were roughly 6,000 cases pending "believed to involve products manufactured by company subsidiaries," Covidien said in a separate filing.