Stryker Corp Faces Another Large Settlement in Fraud Case
Stryker Corporation has announced a major settlement of almost $1.5 billion dollars to be paid to thousands of patients injured by their metal-on-metal Rejuvenate and ABG II Model hip implants. The company now finds itself at the center of another controversy involving one of its subsidiaries, OtisMed, and another dangerously defective piece of medical equipment.
Stryker Corp acquired OtisMed, a California-based medical device company, in 2009. After the merger, Stryker helped oversee the creation and distribution of OtisKnee, a device sold to hospitals as a guide to assist surgeons during knee replacement procedures.
Despite the fact that OtisMed sold over 18,000 OtisKnee guides between 2006 and 2009, resulting in an estimated $27 million profit, the company never received FDA approval for their device. The FDA in fact rejected their product as unsafe in 2009, but this did not deter former OtisMed CEO Charlie Chi from ordering the shipment of 218 OtisKnee devices to doctors and surgeons across the country.
Charlie Chi has since pled guilty to three counts of fraud and faces up to three years in prison. He has been released on $500,000 bail pending a sentencing hearing on March 18th. While Stryker maintains that they were not aware of the FDA’s rejection of the OtisKnee system prior to their 2009 merger, this case still places the embattled company firmly in the center of another major defective medical device controversy.
Medical device manufacturers have an obligation to the patients and doctors who utilize these devices, to follow the proper safety guidelines and deliver the safest, FDA approved product possible. When companies like OtisMed and Stryker Corp betray that obligation and put company gains over consumer safety, it creates a major public health problem. Medical device manufacturers must be held accountable for the tragic and unfortunate complications they cause to unsuspecting patients and doctors.
If you or a loved one has received a Stryker hip implant, call The Yost Legal Group today for help. We will speak with you for free, review your medical records for free, and determine if you have one of the recalled metal hip implants.
If you are experiencing any pain after hip replacement surgery or have had a hip revision surgery, call 1-800-YOST-LAW (967-8529) today. We’ll speak with you for free, explain your rights and fight to make sure you receive the justice and compensation you deserve.