$80 Million OtisMed Knee Replacement Settlement Announced

Alexander Popovich | February 18th, 2015

product liability - risk 1The former CEO of device maker OtisMed Corporation plead guilty to selling 18,000 of its OtisKnee devices from 2006 to 2009, without first seeking approval from the FDA. According to a press release issued by the agency, the CEO admitted to distributing knee surgery cutting guides despite the fact that their marketing clearance was rejected by the Food and Drug Administration. The company must now pay out more than $80 million to resolve civil and criminal liability. 

“We will continue to investigate and bring to justice those who potentially endanger patient safety by distributing unapproved medical devices,” said the FDA’s director of the Office of Criminal Investigations, Philip J. Walsky.

Unfortunately, stories like this are all too common in the United States today. Some 700,000 American patients need knee replacement surgery every year, and entrust that their surgeons are using devices that are safe and FDA-approved. As reported by the New York Times, if it wasn’t for a whistleblower within OtisMed Corporation, consumers may have never learned about the rampant use of a knee replacement tool that was never proven safe and put patients at risk for serious complications.

Defective knee settlement loans

OtisMed has already agreed to pay $40 million plus interest to resolve civil lawsuits involving its cutting guide. And while settlement agreements are promising, many injured plaintiffs do not have the luxury of time for these funds to come through.

LawStreet Capital knows the harrowing financial situation that extended litigation can place on claimants and their families. We offer our assistance with risk-free lawsuit cash advances for knee replacement injury claims. A defective knee implant settlement loan isn’t really a loan per se, but rather an advance on the settlement monies anticipated. If for some reason the settlement does not go through, or the case is lost, there is no obligation to repay.

OtisKnee devices sold without FDA approval

In an era where medical devices are evolving constantly with purportedly better, more advanced technology, Carla Muss-Jacobs didn’t question her surgeon’s choice of using the OtisKnee cutting guide during her knee implant operation.

But following the surgery, her recovery didn’t go well. Muss-Jacobs experienced racking pain, to the extent that she was forced to use a walker. A trip to another doctor revealed that her implant was horribly misaligned. She ultimately had to go through a complex knee revision surgery, and endured a long and painful recovery period, in which she was unable to work.

With bills piling up and no money coming in from work, Muss-Jacobs had to declare bankruptcy. And in the process of pursuing litigation against her original doctor, she learned that many surgeons were questioning the inherent safety of the OtisKnee, since it wasn’t approved by the FDA.

Over the following months, it became evident that the device maker had been marketing directly to providers, claiming the cutting guide would simplify the procedure while boosting revenue from other needed tests, such as MRI scans.

Knee replacement lawsuit funding available

The FDA is charged with regulating medical devices, which are classified to some degree by the companies that manufacture them. In far too many cases, knee replacements that have not been subject to rigorous testing make it to the marketplace through a bypass in the regulatory system.

Manufacturers like Zimmer, Stryker, DePuy and Biomet are facing litigation regarding knee implants that have been tied to unreasonably high failure rates due to faulty design.

If you suffered injuries from the OtisKnee cutting guide or a faulty knee replacement and need monetary assistance while your case resolves, please give LawStreet Capital a call today. The application is free and since the funding is based on the strength of your case, we never ask for employment or credit references.

Don’t settle for less than you deserve, call 1-888-557-1637 to discuss the advantages of lawsuit funding today.


  1. NY Times, Knee Replacement Device Unapproved, but Used in Surgery http://www.nytimes.com/2015/02/08/business/knee-replacement-device-unapproved-but-used-in-surgery.html?_r=2
  2. FDA, OtisMed Corporation, former CEO plead guilty for distributing FDA-rejected cutting guides for knee replacement surgeries http://www.fda.gov/NewsEvents/Newsroom/PressAnnouncements/ucm426134.htm