The Sulzer Ltd Board of Directors and Corporate Executive Management do not accept Sulzer Medica’s assertion that Sulzer Ltd shares responsibility for these production faults. Since going public in 1997, Sulzer Medica Ltd is an independent legal entity separately managed. In particular, the strategic and operational decision-making by the Sulzer Medica Board of Directors and Executive Management was entirely independent of Sulzer Ltd. Furthermore, Sulzer Ltd, then majority shareholder of Sulzer Medica, was not informed until public announcement in December 2000 about these production problems and consequent recall. Since the recall, this matter has been handled exclusively by Sulzer Medica.

Sulzer Ltd is ready to forego its insurance rights totalling CHF 400 million in connection with the proposed settlement with affected patients, provided that Sulzer Ltd, as Sulzer Medica, is released against all further claims by the settlement parties. 

When it went public in 1997, Sulzer Medica Ltd contractually undertook to indemnify Sulzer Ltd against all claims arising from the medical business, and repeated this undertaking on final spin-off in the summer 2001. Sulzer Medica made this undertaking in the summer of 2001 in full knowledge of the recall consequences, and was legally advised by a reputable law firm. The Sulzer Ltd management is therefore astonished that Sulzer Medica is publicly asserting that these agreements are not binding on Sulzer Medica. In the interest of its shareholders, Sulzer Ltd rejects the attempts by Sulzer Medica to question the legality and enforceability of these agreements. Sulzer Ltd rejects Sulzer Medica’s claims for participation in damages compensation beyond potential contribution of its insurance rights. 

Sulzer Ltd is still ready to support Sulzer Medica’s efforts toward reasonable settlement. Sulzer Ltd expects Sulzer Medica to resolve the problems related to these faulty implants with its own resources and at the same time to honour its agreements with Sulzer Ltd.