Zimmer Durom Cup Settlement Reserve Increased

Zimmer Holdings, Inc. reported last month that it is setting aside $75 million to resolve current and future lawsuits over their Durom Cup hip replacement system. 

The medical device company announced the set aside in its 2010 second quarter financial report, saying that it is to address known and anticipated claims connected to its decision to suspend marketing and sales of the Durom Cup for a time 2008 due to unexpectedly high failure rates. Sales resumed several months later after Zimmer improved the warnings and instructions that accompany the device.

In October 2008, Zimmer disclosed that they had set aside $47.5 million to settle Durom Cup claims, and they indicated during their fourth-quarter of 2008 earnings report that the reserves had been increased to $69 million. The $75 million reported this quarter appears to be in addition to that amount.

The Zimmer Durom Cup artificial hip was first introduced in the United States in 2006, as a more advanced form of a hip resurfacing system. The device is designed out of a single piece of material and is supposed to avoid problems associated with traditional hip replacement components, such as instability, limited range of motion and wear of the bearing.

Shortly after Zimmer introduced the Durom Cup in the United States, concerns emerged about a high number of hip replacement failures involving the hip implant, where the component loosened and required revision surgery. A temporary Zimmer Durom Cup recall was issued in July 2008, so that revisions could be made to the product’s warnings and instructions to ensure that doctors were properly trained on the surgical techniques needed to implant the artificial hip correctly.

Approximately 12,000 individuals had the Zimmer Durom Cup system implanted in their hip between 2006 and 2008. While Zimmer’s own estimates in 2008 suggested that some doctors have experienced failure rates as high as 5.7%, more recent claims made in Zimmer Durom Cup lawsuits suggest that the artificial hip failure rate is between 20% and 30%.

In June, the U.S. Judicial Panel on Multidistrict Litigation decided to consolidate and centralize all lawsuits over the Zimmer hip replacement in the U.S. District Court for the District of New Jersey as part of a multidistrict litigation (MDL) for pretrial litigation. At that time, 45 cases had been filed in federal courts throughout the United States. However, as additional cases are filed by Zimmer Durom Cup lawyers in federal court, they will be transferred to New Jersey for coordinated handling.