July 11, 2014 — Coviden is taking a $180 million charge in relation to over 6,000 vaginal mesh lawsuits pending against the company in federal court, according to a filing to the Securities and Exchange Commission (SEC).
Two subsidiaries of Covidien supplied vaginal mesh products to one of the manufacturers named in the litigation. According to MassDevice, Covidien said in the past that it supplies mesh products to C.R. Bard.
Covidien is facing lawsuits in federal court in West Virginia, various state courts, and internationally. According to the filing:
“Generally, complaints allege design and manufacturing claims, failure to warn, breach of warranty, fraud, violations of state consumer protection laws and loss of consortium claims.”
After receiving additional information regarding the nature of the claims, including settlements by other manufacturers, Covidien recorded a pre-tax legal charge of approximately $180 million. Recent settlements may have helped Covidien gauge financial liability in the litigation.
In May, Endo Pharmaceuticals agreed to pay about $830 million to settle about 20,000 lawsuits alleging that its vaginal mesh products eroded, caused pain, incontinence, and needed revision surgery. Under terms of the settlement, women who were injured will receive an average of about $40,000, according to Bloomberg.
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