Facing thousands of lawsuits, Gainesville-based Exactech files for bankruptcy
Gainesville-based Exactech, which specializes in orthopedic implants used in joint replacement surgeries, filed for bankruptcy protection on Tuesday, according to a news release from the company.
KFF Health News that Exactech faces more than 2,000 state and federal lawsuits over defective hip and knee implants.
"... we face unsustainable liabilities associated with knee and hip litigation related to the packaging recalls we voluntarily initiated between 2021 and 2022," Exactech President and CEO Darin Johnson said in the news release. "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.åüÃÄÖ±²¥..."
According to the release, the company "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 åüÃÄÖ±²¥œstalking horseåüÃÄÖ±²¥ bidder to acquire substantially all of the CompanyåüÃÄÖ±²¥™s assets. The investor group will support the Company through the restructuring process, including by providing approximately $85 million of additional financing to fund the CompanyåüÃÄÖ±²¥™s operations.
The bankruptcy proceedings were filed in federal court in Delaware.
åüÃÄÖ±²¥œWe have determined that a court-supervised sale is the best path forward for our stakeholders," Johnson said in the release. "... The investor group shares a commitment to ExactechåüÃÄÖ±²¥™s goals and is excited about further opportunities to drive innovation and growth.åüÃÄÖ±²¥
The release notes that during the restructuring process the company will continue normal operations.
Court records show Exactech is listed as a defendant in hundreds of open cases filed in Alachua County dating back to at least 2021.
KFF Health News reported that some patients were expecting a jury trial against Exactech to begin locally in December. However, attorney Joe Saunders, who represents the patients, told KFF Health News that the bankruptcy filing "stops the public trial and conceals the truth about the company's conduct."
"Exactech's bankruptcy filing is a slap in the face to all the joint-implant patients and doctors who trusted the company," Saunders said.