Coloplast has today announced a decision to make a provision of DKK 1bn to cover potential settlements and other costs in connection with litigation in the US alleging injury resulting from use of transvaginal surgical mesh products designed to treat pelvic organ prolapsed and stress urinary incontinence.
Since 2011, Coloplast has been named as a defendant in individual lawsuits in various federal and state courts around the United States, where Coloplast expects around 7000 legal claims against the company.
With the provision and Coloplast’s product liability insurance of DKK 500m, the total expected costs in connection with litigation in the USA is around DKK 1.5bn.
Coloplast continues to be committed to the market for transvaginal mesh
"With the information currently available to us we believe that our insurance coverage is insufficient and we have made a provision”, states Coloplast CFO Lene Skole.
Coloplast stands by its surgical mesh devices and is prepared to enter litigation. However, if we believe seeking settlements is the right business decision, we will pursue them. Although we have proposed settlements, Coloplast does not admit any liability or that its devices are unsafe.
Coloplast releases the interim financial report covering Q2 2013/14 on May 7th 2014 in which the provision will be included in the financial guidance for the full year of 2013/14.
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