On June 30, 2011, C. R. Bard, Inc. (the “Company”) announced that it has reached agreements in principle with various plaintiffs’ law firms to settle the majority of its existing Hernia Product Claims (as described below). Based on these events, the Company expects to incur a charge of approximately $184 million ($181 million after tax) in the second quarter of 2011 which will recognize the estimated costs of settling all Hernia Product Claims, including asserted and unasserted claims, and costs to administer the settlements. This charge excludes any costs associated with pending putative class action lawsuits. The agreements with the various plaintiffs’ law firms are subject to certain conditions, including requirements for participation in the proposed settlements by a certain minimum number of their respective clients.
“Hernia Product Claims” refers to individual lawsuits and non-litigated claims, as well as putative class actions filed or asserted against the Company, with respect to its Composix® Kugel® and certain other hernia repair implant products. The Hernia Product Claims generally seek damages for personal injury resulting from use of the products. The Company voluntarily recalled certain sizes and lots of the Composix® Kugel® products beginning in December 2005. See the Company’s March 31, 2011 Form 10-Q for more detailed information about the Hernia Product Claims.
“Hernia Product Claims” refers to individual lawsuits and non-litigated claims, as well as putative class actions filed or asserted against the Company, with respect to its Composix® Kugel® and certain other hernia repair implant products. The Hernia Product Claims generally seek damages for personal injury resulting from use of the products. The Company voluntarily recalled certain sizes and lots of the Composix® Kugel® products beginning in December 2005. See the Company’s March 31, 2011 Form 10-Q for more detailed information about the Hernia Product Claims.