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The Federal Court has approved an $8.7 million settlement by Exactech following a class action brought against the US-based medical device manufacturer over allegations that it supplied defective shoulder, hip and knee implants to Australian patients.
GMP Law, which launched the class action in September last year, says the settlement was reached without admission of liability by Exactech Australia and its US parent Exactech Inc.
The products involved were all subject to a recall by Exactech as early as 2021, but the settlement potentially affects transplants undertaken over the past two decades.
The settlement total is described by GMP Law as “modest” largely because Exactech US has entered Chapter 11 bankruptcy, leading to financial uncertainty for the Australian entity.
GMP Law says the settlement scheme provides a contribution toward “non-economic loss rather than full damages”.
“Although the settlement cannot fully compensate individuals for the harm they have suffered, it provides meaningful recognition of the pain and suffering group members have endured,” says Gerard Malouf, founder of GMP Law.
“Despite the commercial pressures created by the US bankruptcy process and the solvency risks facing Exactech Australia, the approved outcome delivers accountability, acknowledgement and a measure of closure for thousands of Australians.
“It offers a quicker, more certain and more proportionate resolution than the risks and delays associated with continued litigation.”
Exactech issued its first recall notice in 2021 for the Connexion GXL liners for the Novation, Acumatch and MCS hip systems due to premature wear from defective packaging.
This was followed in 2022 with a recall for the company’s knee and ankle polyethylene inserts following concerns over their “clinical performance”.
In 2024, Exactech recalled polyethylene patellas, or knee caps, as well as the Equinoxe Shoulder polyethylene humeral liners and anatomic glenoids that were packaged in “non-conforming bags”.
Patients who had joint replacement surgery between 2003 and 2024 involving a recalled Exactech device may be eligible to participate in the settlement.
GMP Law plans to open a formal registration process for group members who wish to participate.
The legal firm says registrants will be assessed under the settlement distribution scheme and placed into one of five compensation categories, ranging from $500 to $6,000 depending on the severity of their injuries and any revision surgeries.
A settlement agreement for the class action was secured on 29 May 2025, but it had been waiting on final Federal Court approval which was granted last Friday.
GMP Law says compensation will not be paid to class action participants immediately as all claims need to be assessed, their eligibility confirmed and court-approved deductions applied, including legal and administration costs and any third-party recoveries.
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