The Australian class action

analysisHarrold v Exactech Australia Pty Ltd (NSD 1224 of 2024) was filed in the Federal Court of Australia on September 5, 2024 against Exactech Australia Pty Ltd (ACN 146 150 754) as first respondent and Exactech Inc as second respondent, on behalf of people implanted in Australia with affected devices from January 1, 2003. The court described Exactech Australia as the subsidiary that imported, advertised, distributed and sponsored the devices and the U.S. parent as responsible for their design, manufacture, packaging and export. The court-approved notice lists the devices as class III entries on the Australian Register of Therapeutic Goods, including Novation, AcuMatch, Optetrak and Optetrak Logic inserts and Equinoxe humeral liners and glenoids, several removed from the register on December 24, 2024. The Exactech respondents denied liability. ^{1 2}

analysisOn December 23, 2024 the proceeding was stayed against Exactech Inc after its Chapter 11 case was recognised as a foreign proceeding; recognition orders of February 6, 2025 stayed proceedings against the U.S. company without the consent of Jesse York, its foreign representative, or the court's leave. The restructuring support agreement required the debtors to open talks with a proposed voluntary administrator of Exactech Australia within 35 days of the petition and to support an Australian restructuring, and Exactech Australia risked being placed into voluntary administration if no settlement was reached in time. ^{1 2 3}

analysisThe parties agreed, without admission of liability, to settle for about A$8,700,000, funded by Exactech Australia, an outside financier and the respondents' insurers, and on September 15, 2025 the U.S. bankruptcy court authorised Exactech Inc to give effect to the settlement deed. Justice Jackman approved the settlement on November 13, 2025 in Harrold v Exactech Australia Pty Ltd (No 2) [2025] FCA 1412, with deductions for costs, a payment to the applicant and administration before distribution, and otherwise dismissed the proceeding without costs orders. ^{1 2}