LivaNova To Settle 75% of 3T Heater-Cooler Litigation

Introduction

LivaNova PLC, leading medical technology provider declared to settle close to 75% of litigation in the U.S. linked to the company's 3T heater-cooler device.

The company agreed to a settlement framework that will facilitate comprehensive resolution of the pending personal injury cases in the multidistrict litigation, a related class action case pending in the U.S. federal court, and also some cases in the U.S. state courts. The company plans to resolve the cases for up to $225 million, out of which $135 million will be paid by July 2019 and the remaining amount will be paid in January 2020. LivaNova had set aside $294 million in its fourth quarter of 2018 in connection with the 3T heater-cooler litigation. LivaNova made no admission of liability in the settlement agreement and can void the agreement if certain conditions are not met, including, 95% participation from each category of plaintiffs. Damien McDonald, Chief Executive Officer of LivaNova told, "we believe entering into the settlement is in the best interest of the company, its shareholders and patients because it will remove ongoing costs and uncertainty as we focus on executing our strategy to deliver quality care to patients around the world."

Each year about 250,000 heart bypass surgeries are conducted, and 60% of hospitals use the 3T heater-cooler device, sold under the brand name, Stockert Heater-Cooler System (3T). Lawsuits filed against the company states that there is the potential for Nontuberculous mycobacteria (NTM), specifically Mycobacterium chimera bacteria to grow in the water tank of the heater-cooler units.

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