The plaintiffs, Sulzer Medica, and Sulzer have reached an agreement on the crucial issues of a settlement agreement regarding the re-call of hip and knee implants in the USA. Sulzer AG and Sulzer Medica AG have made a bilateral agreement clarifying their internal relationship.
The bilateral agreement between Sulzer AG and Sulzer Medica AG, which was signed last weekend, was made in view of the settlement agreement with the plaintiffs in the USA. Complying with one of the conditions for Sulzer's financial participation in the envisaged settlement, Sulzer Medica expressly agreed to indemnify and hold Sulzer harmless for all remaining risks. As soon as the settlement agreement becomes finally effective, Sulzer will have no additional financial risks, including risks relating to patients who opt-out of the settlement.
Sulzer's CEO, Fred Kindle: "The proposed settlement, and the agreed bilateral contract are acceptable for all parties involved. I am confident that the settlement will overcome the last hurdles, and that we can finally close this chapter for Sulzer AG."
Sulzer's participation in the settlement among the various parties consists of a payment of USD 50 mio. and the transfer of 480'000 Medica shares still owned by Sulzer. Sulzer accepts no legal or moral responsibility for the problems relating to the implants; the settlement will, however, allow it to avoid costly and lengthy litigation, and to concentrate fully on the business.
Because finalization of the settlement will take more time than anticipated, U.S. District Court Judge Kathleen M. O'Malley extended the injunction enjoining individual lawsuits until March 8, 2002. On May 6, 2002, the U.S. District Court in Cleveland, USA, will hold a hearing to decide on the acceptability of the settlement. |