Hernia Patch Lawyers

Corporate Choices - Why Products Remain on the Market

When news of the problems that were linked to the Kugel Mesh hernia patch came to light, all sorts of theories, stories and allegations followed it. One of the most daunting issues that was mentioned by many was that it was possible that Davol, Inc., the manufacturer of the Kugel Mesh patch, knew of the potential problems with the product for some time before deciding to initiate a recall.

No one at this point outside of Davol's inner circle knows if that's the truth, but in general, this wouldn't be the first time that a corporation has allowed a potentially dangerous product to remain on the market even if it knew that it could cause injuries to those who use it. Below we'll take a look at why corporations tend to approach these issues in this manner.

Stock Price

Nothing harms a public company more than a plunge in its stock value. This issue not only affects the management team within the company, but obviously rankles the shareholders in the general public. If a stock drops too quickly, a large-scale sell-off could ensue, which would lead to jobs suddenly being in jeopardy and the long-term viability of a corporation coming into question.

What causes a stock's value to plunge? Well, a slew of lawsuits by private citizens, class action suits and government-led investigations would certainly accomplish just that. Not to mention, nothing spurns lawsuits and investigations than allegations that a product is dangerous and is causing injuries.

Number Crunching

This may sound awfully cold and calculated, but the fact of the matter is that cost accountants are paid to completely remove the human element from the equations they tabulate on a daily basis, and when it comes to a defective product, they take that line of thinking to the extreme. Basically, when a company discovers a potential problem with a product, they start with a cost analysis. If it's going to cost the company less to simply pay out a relatively small number of judgments and settlements than to recall an entire product line, then that's how many companies will proceed.

Overall

As we've stated, we don't know at this point when Davol knew of a problem with their Kugel Mesh patch, nor do we know what they decided to do if they did find out. However, we do know how corporations think, and we also know that if you've been injured by the Kugel Mesh hernia patch, you need to contact the hernia patch lawyers at Williams Kherkher immediately to schedule a free initial consultation.