CryoLife settles 5 product liability lawsuits, but says one insurer will not pay part of settlement.
The news was not all good, however. One of the insurance companies indicated it will not pay part of a product liability suit which CryoLife admitted could have a "material effect" on its financial position. The company covering the last $10 million of the remaining insurance has indicated it intends to exclude certain cases under its policy, which may have the effect of decreasing the total coverage available, CryoLife reported.
In a press release CryoLife said: "Based on an analysis of the product liability now pending against the company, settlement negotiations to date, the position taken by the upper layer excess carrier and advice from counsel, company management believes that a portion of the expense of resolving these cases will be the paid by the company [CryoLife]. At this time, the company cannot determine the amount of payments required to resolve these cases, which could have a material adverse effect on the company's financial position."
CryoLife was hit with 7 separate lawsuits in 2002 over the death of a Minnesota man following knee surgery that was attributed to tainted tissue the patient received during the operation. The tissue was distributed by CryoLife. (Transplant News, July 27, 2002)
Contact: Joseph Schepers - (770) 419-3355; Web site: www.cryolife.com
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|Comment:||CryoLife settles 5 product liability lawsuits, but says one insurer will not pay part of settlement.|
|Article Type:||Brief Article|
|Date:||Jul 25, 2003|
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