Exactech Files for Bankruptcy in Response to 2,600 Lawsuits Over Recalled ImplantsExactech Files for Bankruptcy in Response to 2,600 Lawsuits Over Recalled Implants
The Gainsville, FL-based company will undergo a comprehensive restructuring support agreement, with its investor group. This group will serve as a stalking horse bidder to acquire all of Exactech’s assets.
October 30, 2024
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At a Glance
- The company has secured an $85 million financing agreement with existing investors to support its restructuring efforts.
- The lawsuits are related to recalled knee, hip, and shoulder implants.
Exactech, a developer of knee, hip, and shoulder implants has filed for bankruptcy, according to a report from Reuters.
The Gainsville, FL-based company is looking to sell off assets and resolve 2,600 lawsuits over recalled knee, hip, and shoulder implants.
Exactech said it has entered into a comprehensive restructuring support agreement and asset purchase agreement with a group of its existing investors, pursuant to which the investor group will serve as the "stalking horse" bidder to acquire substantially all of its assets.
Exactech said the investor group would support it through the restructuring process, by providing about $85 million of additional financing to fund operations.
"Our team has delivered strong performance and positive growth in 2024, and we are confident in the trajectory of our business," said Darin Johnson, President and CEO. "However, despite the strength of the underlying business, we face unsustainable liabilities associated with knee and hip litigation related to the packaging recalls we voluntarily initiated between 2021 and 2022. We take our commitment to patient well-being very seriously and have provided substantial out-of-pocket patient reimbursements and surgeon support for related expenses. The process we are commencing today is intended to help us create a stronger foundation for long-term growth with an improved balance sheet and new capital as well as ensure that we can continue providing innovative, industry-leading implants for surgeons and their patients for years to come."
Exactech recall woes began in 2021. The recalls spawned a special report from KFF Health News that was published about a year ago.
The KFF Health News investigation found that in the hundreds of instances, Exactech took years to report events to a federal database, according to a CBS report.
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