Hip Implant Settlement Gets Preliminary OK

Sulzer Medica won preliminary approval from a federal judge for a $780-million class-action settlement over its recall of faulty hip implants, despite objections that the amount is too small.

U.S. District Judge Kathleen O’Malley in Cleveland let the Swiss company proceed with the settlement, though it faces more hearings on the fairness of the agreement.

Sulzer’s Austin, Texas-based Sulzer Orthopedics unit began recalling 26,000 hip-implant shells in January, saying they could lead to loosening of the implants. More than 1,000 lawsuits have been filed, and lawyers for Europe’s biggest orthopedics company said it faces bankruptcy if those cases go to trial and result in damage awards.

Sulzer’s American depositary receipts rose 13 cents to $6.66 in NYSE trading.