Exactech Settles $8 Million False Claims Act Allegations Over Defective Knee Implants

Orthopedic device maker Exactech has agreed to pay $8 million to settle allegations that it knowingly sold defective knee implants, resolving claims under the federal False Claims Act, according to the U.S. Attorney’s Office for the District of Maryland. The settlement concerns two components: the finned tibial tray, a metal part fitting into patients’ tibias, and a polyethylene component in Logic and Truliant knee systems. Allegedly, Exactech knew of tibial tray defects as early as 2008 and polyethylene failures since 2019 but continued sales through 2018 and 2022, respectively, submitting claims to Medicare, Medicaid, and the Department of Veterans Affairs.

The company, currently in Chapter 11 bankruptcy due to product liability lawsuits from thousands of patients, has recalled multiple orthopedic devices, including shoulder, hip, knee, and ankle implants. FDA warnings and investor-backed restructuring are underway, with Strategic Value Partners, Stellex Capital Management, and Greywolf Capital Management set to acquire most of Exactech’s assets.

21-09-2025