Germany's Fresenius Medical Agrees to Pay $250 million to Settle Dispute
February 18 2016 - 3:04AM
Dow Jones News
By Natascha Divac
FRANKFURT--Germany's Fresenius Medical Care said Thursday it
agreed to pay $250 million to plaintiffs in the U.S. to settle a
long-running dispute over product liability involving its
dialysates GranuFlo and NaturaLyte.
The world's largest provider of dialysis products was accused of
not having adequately informed the public of the products' possible
side effects.
Under the agreement, the settlement amount would be $250
million, provided that 97% of all plaintiffs agree to the
settlement by July 2016. Insurers will fund the settlement amount
with $220 million.
The company said it expects a pre-tax charge of $60 million from
the settlement and other costs to finalize the matter. These costs
will be reflected in its full-year 2015 results due on Feb. 24, but
they aren't expected to affect the financial outlook.
For 2015, Fresenius Medical expects to report revenues of
approximately $16.7 billion. Excluding the charge net of tax, the
2015 net income attributable to shareholders should increase by
approximately 2% over the same period a year earlier.
The company's GranuFlo and NaturaLyte products remain on the
market. "There has been no change in the composition of the product
and it remains safe and effective when used and prescribed as
directed," the company said.
Write to Natascha Divac at natascha.divac@wsj.com
(END) Dow Jones Newswires
February 18, 2016 02:49 ET (07:49 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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