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SHINE Corporate's (ASX:SHJ) shares were given a boost after the Brisbane-based legal firm revealed it had reached agreement over a $250 million class action against a hip replacement manufacturer.
The terms of the settlement have not been disclosed, but Shine's shares rose more than 4 per cent to close at 83c following the announcement.
The class action, brought by 2000 Australian patients, targeted medical giants DePuy and Johnson & Johnson, who produce and distribute the ASR hip implant.
The Federal Court action, launched in 2010, had alleged the replacement hips supplied by these companies was defective, leading to allegations that they had left recipients with chronic pain and potential infections.
It is understood that 5000 of the hip replacements had been implanted between 2003 and 2009.
Shine and Maurice Blackburn had sought compensation of $250 million plus interest from the manufacturers in what has been described as the largest class action of its kind in Australia.
"The terms of the settlement are confidential between the parties and must be approved by the court," says Shine in a statement to the ASX.
"The settlement of the DePuy Class Action will not impact Shine Corporate's financial results as revenue has been progressively brought to account in accordance with the relevant accounting standards.
"Subject to the timing of the court's approval, the settlement is expected to have a net positive impact on the group's gross operating cashflow in the first half of the financial year ending June 30, 2017.
"Shine Corporate will update the market once all settlement conditions have been satisfied."
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