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UPDATE 1-Covidien to take $180 mln legal charge in third quarter
July 11, 2014 / 1:20 PM / 3 years ago

UPDATE 1-Covidien to take $180 mln legal charge in third quarter

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July 11 (Reuters) - Medical device maker Covidien Plc said it recorded a pre-tax charge of about $180 million for the third quarter, related to litigation against some manufacturers of pelvic mesh products.

The company's two units supplied pelvic mesh products to one of the manufacturers named in a lawsuit. Covidien said it was indemnifying the manufacturer on certain claims. (1.usa.gov/1kcXcYk)

The manufacturers have alleged injuries to users resulting from the implantation of products supplied by Covidien.

Pelvic mesh products are used to treat conditions such as pelvic organ prolapse, where the uterus or bladder slip out of their place, and stress urinary incontinence.

Covidien said in a filing in February that there were more than 5,600 cases pending related to products manufactured by its units.

The company is among several major medical device makers that have been hit with thousands of lawsuits over mesh devices.

In April, Endo International Plc agreed to pay $830 million to resolve legal claims from women who said they were injured by transvaginal mesh devices.

In the same month, the U.S. FDA said it was considering proposals to tighten safety standards for mesh used to treat pelvic organ prolapse.

If finalized, the proposals would require manufacturers to submit data proving the safety and effectiveness of the devices before allowing them in the market.

Dublin-based Covidien, which is being bought by U.S. medical device maker Medtronic Inc, reports its third-quarter results on July 25.

Shares of Covidien closed at $91.00 Thurdsay on the New York Stock Exchange. (Reporting by Shailesh Kuber; Editing by Saumyadeb Chakrabarty)

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