Following years of recalls and mounting litigation over defective packaging for hip and knee implant devices, Exactech has filed for bankruptcy.
The Florida-based medical technology company said on Tuesday that its decision to file for Chapter 11 was due to the numerous pending lawsuits that claim its hip and knee implants were defective and failing early.
“We face unsustainable liabilities associated with knee and hip litigation related to the packaging recalls we voluntarily initiated between 2021 and 2022,” President and CEO Darin Johnson said in a statement. “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.”
Lawsuits against Exactech had been progressing in multidistrict litigation, with the first trial in the group of lawsuits scheduled for September 2025. That bellwether case was expected to inform the direction of the litigation, with another trial scheduled for November 2025 as well.
But now those claims are on hold. CBS News reported that, as part of the bankruptcy process, ongoing lawsuits against Exactech have been paused.
It’s not uncommon for companies facing thousands of similar lawsuits to lean on bankruptcy proceedings in an effort to resolve and move past those cases. Johnson & Johnson just last month had a subsidiary file for Chapter 11 in order to complete a multi-billion settlement over claims that its baby powder is tied to cancer.
It’s unclear at this time what Exactech’s plans are to resolve the outstanding litigation in the wake of the bankruptcy filing, but the progress of those lawsuits will likely slow thanks to the pause and the ongoing bankruptcy proceedings.
As part of the bankruptcy, Exactech said that its assets will be sold to a group of existing investors, who will provide $85 million to fund the company’s operations during the restructuring.
Exactech Lawsuits Stem from Defective Packaging, Early Device Failures
The thousands of lawsuits against Exactech stem from several recalls the company has made over the last few years due to defective packaging for some of its joint replacements.
Following a recall for products due to early wear, Exactech discovered that some devices had been packaged in bags missing a key layer meant to protect against oxidation.
Without that layer, the joint devices were exposed to more oxygen than expected, which could lead to early wearing, component fractures and device failure.
According to KFF Health News, an analysis showed that surgeons had removed 200 implants after less than seven years when those devices were expected to last 15 to 20 years.
This month, there were 1,770 active lawsuits pending in the Exactech MDL.