Endo International (NASDAQ:ENDP) slips 3% after hours on robust volume on the heels of its announcement that it has reached agreement to resolve virtually all known U.S. mesh product liability claims and is in discussions to resolve them all at reasonable valuations.
Under the terms of agreements, it will make installment payments beginning in Q4 and continuing through Q4 2019. In Q2, it will increase its liability accrual by $775M which should cover ~22K U.S. cases and all known international product liability claims and other mesh-related matters.
CEO Paul Campanelli says, "Beginning in the second quarter of 2017, we aggressively executed a settlement strategy in connection with Endo's mesh litigation. We believe it is a very important milestone for Endo to have reached agreements to resolve virtually all known U.S. mesh product liability claims. While it remains possible that additional claims will be filed, we believe today's announcement will assist most mesh claimants to move forward with their lives and will permit Endo to move forward with an even greater focus on executing against our core strategic priorities."
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