The Settlement Trust's suit against TPG and former directors

analysisEllen K. Reisman, trustee of the Exactech Settlement Trust created under the bankruptcy plan, sued in the Delaware Court of Chancery (C.A. No. 2026-0129-MTZ) on 30 January 2026. The defendants are TPG, Inc., TPG Partners VII, TPG VII Management, TPG VII Osteon Holdings, TPG Operations, TPG Holdings II Sub and TPG Capital – FO, together with Jeffrey Binder, Kendall Garrison, John Schilling, Todd Sisitsky, Michael Tepatti, Bennett Yasskin, John Lin and William and David Petty. The trust asks the court to declare that TPG acted as the alter ego of Osteon Holdings and Exactech and is liable for its product liabilities, and claims damages of at least $1 billion for breach of fiduciary duty, aiding and abetting, fraudulent transfers and waste; it pleads a separate claim against the Pettys for their conduct before 2018 and reserves claims over more than $600 million paid to shareholders in the 2018 deal. ^{1 2 3 4 5}

qualification

These are allegations in the Settlement Trust's complaint, which was pending in the Delaware Court of Chancery in October 2026; no court has ruled on them.

response

TPG has denied wrongdoing, a local television investigation reported in September 2026; in a statement to a national newspaper in May 2025 TPG called it 'categorically false' that it had any prior knowledge of the packaging nonconformance, and in court filings TPG and its affiliates have said that Exactech and TPG maintained 'clearly separate businesses'.

outcome

Pending: the docket showed the case as active on 16 October 2026; a filing of 14 August 2026 attached the Maryland qui tam papers and the plan confirmation order as exhibits, but the filing itself is not in the record and no ruling is recorded.

analysisBefore the suit, the official committee of unsecured creditors alleged in the bankruptcy court, as a national newspaper reported in May 2025, that Exactech and certain officers and directors had known of product defects since 2005 and engaged in practices designed to hide them, including giving misleading information to the FDA, and that TPG and Binder became aware of the full scope of the defects after the 2018 closing. ¹

qualification

These are the committee's allegations in bankruptcy-court filings, as reported; they were not adjudicated, and the claims passed to the Settlement Trust.

response

Exactech and its TPG affiliates disputed the allegations, saying in bankruptcy-court responses that the committee was merely speculating that directors and officers had acted with an actual intent to violate the law or neglect their duties.