Sulzer Medica AG

The company has settled a class action lawsuit in regards to faulty hip and knee surgical implants made by a subsidiary, avoiding bankruptcy for Sulzer. The suit was settled for $725 million. 87 plaintiffs will be paid around $200 000 each over the next year and a half. The settlement will also cover both medical and legal expenses. As well as the $725 million being paid by Sulzer Medica AG, the former owner of the company and also the insurers are paying $275 million. The plaintiffs in the case would have made more money through individual cases, but Sulzer threatened to declare bankruptcy if that happened. Although there are more cases which aren't included in this settlement, the company has promised to "aggressively defend" itself in court. (May-31-02) [AUSTIN BUSINESS JOURNAL]