Becton Dickinson Hernia-Mesh Settlements Will Exceed $1 Billion

Becton Dickinson & Co. will pay more than $1 billion to resolve more than 38,000 lawsuits alleging medical patients suffered damaged organs from surgical mesh improperly used to treat hernias, according to people familiar with the deal who weren’t authorized to speak publicly.

Becton didn’t disclose the cost of the settlement it announced Wednesday, saying only that the deal resolves the “vast majority” of its existing hernia-mesh claims with payments over a multi-year period. There was no mention of future claims. As of June 30, the company had set aside $1.7 billion for all its product-liability cases, including the mesh litigation, company filings show.

Hernia patients alleged suppliers of components of the mesh — made by Becton’s CR Bard and Davol units — warned the manufacturers that it wasn’t fit to be implanted in humans, but the companies used it anyway. Becton officials dispute claims the mesh wasn’t safe for surgical use. The company said it agreed to resolve the litigation “to eliminate uncertainty,” but didn’t admit any wrongdoing.

“Because the settlement is confidential, we aren’t commenting” on the specific size of the total payout or how long it will take to make all the distributions, Troy Kirkpatrick, a Becton spokesman, said in an email Thursday.

Under the settlement, payouts will take place over a period of less than five years, according to people familiar with the deal.

The company said the accord won’t affect its cash flow goals because of its litigation reserves, which have dropped from $1.9 billion in September 2023 after it reached some settlements and paid legal fees.

In its statement Wednesday, Becton said it will “continue to vigorously defend itself” in the cases where patients choose not to join the settlement.

Sales of hernia mesh, which came on the market in 2002, generated about $5 billion for Becton and other mesh makers in 2021, and the global market could reach more than $6.5 billion by 2032, analysts said. Doctors perform more than a million hernia surgeries each year in the US, many of which include the disputed meshes.

The accord covers more than 38,000 hernia-mesh suits, the majority of which are gathered before a federal judge in Columbus, Ohio. Other cases lodged in state court in Rhode Island are also eligible to participate in the out-of-court resolution.

The case is IN RE Davol/CR Bard Polypropylene Hernia Mesh Products Litigation, 2:18-md-2846, US District Court for the Southern District of Ohio (Columbus).