Cybex International is in danger of being forced into bankruptcy after a New York court ruled it must pay a New York woman $66 million after she was injured by one of the company’s weight machines in 2004.
Natalie Barnhard, 30, sued the Medway-MA based manufacturer of exercise equipment after a Cybex-built leg extension machine fell on top of her, crushing vertebrae in her back and rendering her a quadriplegic. Barnhard, who was 24 at the time of the incident and working as a physical therapist’s assistant at Amherst Orthopedic Physical Therapy in Buffalo, said the machine fell on her when she put her hand on top of it to brace herself while she stretched.
Expectedly, Cybex, which currently has less than $4 million available for insurance coverage related to the claim , said it will “vigorously pursue” an appeal. If the verdict holds up, most stock analysts believe Cybex would be unable to cover the cost and would be forced into bankruptcy. Shares of Cybex fell 37% after the verdict was announced Wednesday.
In a statement, Cybex Chairman and CEO John Aglialoro said the company “strongly believes” it is not negligent for the accident. “This piece of equipment has been in continuous operation for over 25 years in the same facility as Ms. Barnhard was injured to the current date, with no incidents reported other than this one event,” Aliarloro stated. “We will vigorously pursue all avenues to attain a reversal of this verdict.”
The verdict in Barnhard v. Cybex Int’l, Inc. was apportioned 75% to Cybex, 20% to Amherst Orthopedic Physical Therapy, P.C. and 5% to the plaintiff. Under New York law, Cybex would be responsible for 95% of the verdict but may collect 20% of the verdict from Amherst Orthopedic. The amount required to be added to the company’s litigation reserve in Q4 will be determined as the post-trial motion process proceeds.
