A New York court has awarded a 30-year-old woman $66 million in a product liability case against exercise equipment maker Cybex International, Inc. and a physical therapy company. Stock analysts said that if the ruling stands, it could force Cybex into bankruptcy court, according to media reports. Shares of Cybex fell 37% after the verdict was announced Wednesday.
The verdict in Barnhard v. Cybex International, 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. CYBEX management is extremely disappointed in this verdict, which it does not believe is supported by the facts or the law, and stated that it will pursue all available options, including post-trial motions and appeal.
The plaintiff in Barnhard was rendered a quadriplegic after she pulled a CYBEX weight machine over on herself.
“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,” CYBEX Chairman and CEO John Aglialoro stated. “We strongly believe that CYBEX was not negligent and is in no way responsible for this tragic accident. We will vigorously pursue all avenues to attain a reversal of this verdict.”
CYBEX management in consultation with counsel is analyzing the impact of the verdict on the company and its financial condition. CYBEX’s available insurance coverage for this claim is currently less than $4 million. The amount of the required fourth quarter addition to the company’s litigation reserve will be determined as the post-trial motion process proceeds.
