On October 29, 2024, Exactech filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the District of Delaware (Case No. 24-12441) amid expanding implant recall litigation and approximately $352 million in funded debt. On September 17, 2025, the bankruptcy court confirmed the restructuring plan and approved the sale of substantially all assets to an investor group led by Strategic Value Partners (SVP) and Stellex Capital Management. In January 2026, Exactech agreed to pay $8 million to resolve U.S. government allegations under the False Claims Act that it knowingly sold defective implants to Medicare, Medicaid, and the VA. On February 5, 2026, the Exactech Settlement Trust filed a verified complaint against TPG Inc. and more than a dozen individual defendants including founders Dr. William Petty and David Petty, alleging breACH of fiduciary duty, alter ego liability, and fraudulent transfers, seeking damages not less than $1 billion.
Company Profile (Updated April 2026)
Exactech Inc. is a global medical device company that develops and markets orthopedic implant devices, related surgical instruments, and smart navigation technologies for joint replacement surgery. Founded in 1985 by orthopedic surgeon Dr. Bill Petty, his wife Betty Petty, and biomedical engineer Dr. Gary Miller, the company is headquartered in Gainesville, Florida, USA. For nearly four decades, Exactech built a reputation as a surgeon-centric innovator in shoulder, knee, hip, ankle, and spine arthroplasty before a massive polyethylene insert recall and resulting litigation led to a Chapter 11 restructuring in 2024–2025.
Development History:
- 1985: Exactech founded in Gainesville, Florida, by Dr. Bill Petty, Betty Petty, and Dr. Gary Miller, initially focusing on hip replacement implants
- 1994: Entered the knee implant market with the launch of the Optetrak knee replacement system
- 1996: Completed initial public offering (IPO) on Nasdaq
- 2005: Launched the Connexion GXL acetabular liner for hip replacement
- 2009: Introduced Optetrak Logic knee system
- 2016: Received FDA 510(k) clearance for the Vantage Total Ankle System; performed first Vantage surgery in October 2016 at DUKe University
- 2017: Entered the foot and ankle market with Vantage; TPG Capital acquired Exactech for $625 million ($42.00 per share in cash), taking the company private; Exactech Arena naming rights agreement signed with University of Florida
- 2021–2022: Initiated sweeping voluntary recalls of knee and ankle implant polyethylene inserts manufactured between 2004 and 2022 due to non-conforming packaging that allowed oxygen transmission, causing premature oxidation and device degradation; in August 2022, expanded recall to include all hip polyethylene components (Novation, AcuMatch, MCS liners); in February 2022, recalled Vantage Total Ankle System liners
- 2023: Presented 12 studies at the Orthopaedic Research Society annual meeting highlighting knee and shoulder replacement research; launched Vantage Ankle 3D and 3D+ tibial implants with GPS Ankle navigation
- 2024: In January, the FDA issued a Safety Communication for the Equinoxe Shoulder System due to defective packaging; in March, Exactech voluntarily recalled the Equinoxe Shoulder System (124,231 devices) to eliminate confusion and concern in the market; on October 29, filed for Chapter 11 bankruptcy in Delaware; obtained debtor-in-possession (DIP) financing of up to $85 million (SOFR + 8.0% with 2.0% floor); appointed EI Bidco, LLC as stalking horse purchaser
- 2025: On March 11, SVP/Stellex investor group designated as winning bidder; on March 27, sale presented for court approval; on September 17, bankruptcy court confirmed plan and sale order; company emerged from Chapter 11 with improved balance sheet under new ownership; in December, paid $8 million False Claims Act settlement
- 2026: In January, False Claims Act settlement publicly announced; in February, Exactech Settlement Trust filed $1 billion lawsuit against TPG and former directors; continues operations under SVP/Stellex ownership while managing legacy recall-related claims through the Exactech Settlement Trust
Core Mission: To be the leADINg surgeon partner in orthopedics by developing and providing high-quality, innovative implant systems and smart technologies that empower surgeons and improve patient outcomes worldwide.
Product Portfolio ＆ Technology Platform
Knee Replacement Systems
Optetrak: First launched in 1994, Exactech's initial knee replacement system and longest-running product line
Optetrak Logic: Advanced knee system launched in 2009 with improved instrumentation and implant options
Truliant: Knee system introduced in 2017 featuring streamlined instrumentation and modern implant designs
Arthrofocus: Knee system Included in the recall portfolio
Recall Status (2021–2022): All knee systems were subject to recall due to non-conforming packaging of polyethylene tibial inserts, which allowed oxygen to degrade the plastic components prematurely. Approximately 489,498 knee devices were recalled in total.
Hip Replacement Systems
Alteon Monobloc Revision Femoral Stem System: Designed to improve surgical experiences by combining axial and rotational mechanical stability
- Alteon HA Hip Stem: Hydroxyapatite-coated hip stem for enhanced fixation
- Connexion GXL Acetabular Liner: Hip liner system launched in 2005; included in the 2021–2022 recall due to packaging defects. Approximately 39,942 hip devices recalled (Novation, AcuMatch, MCS liners).
Shoulder Replacement Systems
Equinoxe Shoulder Platform: Comprehensive shoulder arthroplasty system including:
- Equinoxe Shoulder Primary System
- Equinoxe Shoulder Reverse System
- Equinoxe Small Primary System
- Equinoxe Preserve Stem
- Equinoxe Humeral Augmented Tray
- Equinoxe Humeral Reconstruction Prosthesis
- Equinoxe Shoulder Fracture System
- Equinoxe Shoulder Resurfacing Head
Recall Status (March 2024): Exactech voluntarily recalled the Equinoxe Shoulder System (124,231 devices) due to defective packaging similar to hip, knee, and ankle recalls. The FDA had issued a Safety Communication in January 2024 warning that these devices may need replacement.
Clinical Evidence: Multiple government registry analyses demonstrate significantly lower device-related revision rates with the Equinoxe system compared to other shoulder prostheses
Ankle ＆ Extremities
Vantage Total Ankle System: FDA 510(k) cleared in 2016; first surgery performed October 2016 at Duke University by Drs. Mark Easley and James Nunley
Vantage Ankle 3D and 3D+ Tibial Implants: Feature 3D-printed porous surfaces, spiked pegs, and a sharp central cage mimicking natural bone structures; integrated with GPS Ankle navigation for real-time surgical guidance
Recall Status: Vantage Total Ankle System included in the 2021–2022 recall. Approximately 3,720 ankle devices recalled.
Active Intelligence® ＆ GPS Navigation
Active Intelligence®: Platform of smart technologies connecting preoperative planning, intraoperative guidance, and postoperative data analytics
GPS Navigation: First-to-market GPS Ankle technology for total ankle replacement, providing real-time guidance without large external frames and reducing fluoroscopy reliance; first surgeries performed December 2023 at Mayo Clinic Jacksonville by Dr. Edward Haupt
Biologics ＆ Spine
Exactech previously offered biologic materials and spine products; the Biologics ＆ Spine segment was wound down in later years as the company focused on large-joint arthroplasty
The 2021–2024 Recall Crisis
Recall Scope ＆ Timeline
Between 2004 and 2022, Exactech produced joint replacement polyethylene inserts packaged in non-conforming bags that were "out of specification." The single-layer packaging allowed oxygen transmission to the devices, causing oxidation and premature deterioration after implantation. In total, approximately 657,391 devices were recalled across all product lines.
Recalled Products by Category:
- Knee (489,498 devices): Optetrak (all generations since 1994), Optetrak Logic (since 2009), Truliant (since 2017), Arthrofocus
- Hip (39,942 devices): Novation, AcuMatch, and MCS polyethylene liners (Connexion GXL and others)
- Ankle (3,720 devices): Vantage Total Ankle System (since 2016)
- Shoulder (124,231 devices): Equinoxe Shoulder System (recalled March 2024)
Impact: Approximately 147,732 knee and ankle inserts were implanted in the United States alone, with thousands more hip and shoulder devices distributed internationally. The recall triggered a wave of product liability lawsuits, revision surgeries, and ultimately contributed to the company's Chapter 11 filing.
Root Cause: Exactech stated the degradation was related to faulty vacuum bag packaging that failed to include an additional oxygen barrier layer. However, litigation counsel has alleged that manufacturing defects in the polyethylene liners themselves may also have contributed to premature failure.
Chapter 11 Bankruptcy ＆ Restructuring (2024–2025)
Bankruptcy Filing
On October 29, 2024, Exactech, Inc. and affiliated debtors filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware (Case No. 24-12441), presided over by Judge Laurie Selber Silverstein.
Key Metrics at Filing:
- Funded Debt: Approximately $352 million
- Employees: Approximately 900 worldwide
- DIP Facility: Up to $85 million (up to $35 million interim availability; SOFR + 8.0% with 2.0% floor)
- Stalking Horse Purchaser: EI Bidco, LLC
Plan Architecture: The confirmed plan channeled personal injury and recall-related exposure into a dedicated Exactech Settlement Trust, while preserving the ability to transfer operating assets to a buyer free and clear of successor liability theories.
Sale to SVP / Stellex Capital
On March 11, 2025, an investor group including funds managed by Strategic Value Partners, LLC (SVP) and Stellex Capital Management LLC was designated as the winning bidder to acquire substantially all of Exactech's assets. The sale was presented for court approval on March 27, 2025, and closed following confirmation on September 17, 2025.
New Ownership Commitment: SVP Managing Director Clara Anderson stated: "Exactech is a company with an impressive legacy of innovation, a track record of collaboration with surgeons, and an ultimate mission to improve patient lives. Our goal is to continue investing in and growing the business so that it can continue to provide innovative, industry-leading implants for surgeons and their patients for years to come."
Litigation ＆ Regulatory Actions (2026)
Exactech Settlement Trust v. TPG Inc. et al. (February 2026)
On February 5, 2026, the Exactech Settlement Trust filed a verified complaint in the Court of Chancery of the State of Delaware (Case No. 2026-0129-MTZ) against TPG, Inc. and individual defendants, seeking damages not less than $1 billion.
Defendants:
- TPG Defendants: TPG, Inc., TPG Partners VII LP, TPG VII Management, LLC, TPG VII Osteon Holdings, L.P., TPG Operations, LLC, TPG Holdings II Sub, LP, TPG Capital - FO, LLC
- Individual Defendants: Jeffrey Binder, Kendall Garrison, John Schilling, Todd Sisitsky, Michael Tepatti, Bennett Yasskin, John Lin, Dr. William Petty, David Petty, and others
Allegations (11 Counts):
1. Alter Ego: TPG operated as the alter ego of Exactech and Osteon Holdings, dominating communications with regulators, surgeons, hospitals, and patients
2. Breach of Fiduciary Duty: Individual defendants breached duties of care, loyalty, and good faith to Exactech and its creditors once insolvent
3. Breach of Fiduciary Duty (Self-Dealing): Causing Exactech to enter into the TPG acquisition and incur substantial debt at the expense of Exactech while profiting themselves
4. Breach of Fiduciary Duty (Corporate Waste): Reckless and grossly negligent waste of corporate assets, including payment of TPG's $5.9 million management services invoice when Exactech had no obligation to do so
5. Aiding and Abetting Breach of Fiduciary Duty: TPG defendants aided and abetted individual defendants' breaches
6. Breach of Fiduciary Duty by Dr. Petty and David Petty: Specific allegations against founders for mismanagement and self-dealing
7. Permitting Breach of Fiduciary Duty Claims to Lapse: Failing to bring timely claims against former directors and officers or obtain tolling agreements
8. Actual Fraudulent Transfer (Management Services Agreement): Exactech's payment of $5,909,935 to TPG constitutes actual fraudulent transfer
9. Constructive Fraudulent Transfer (Management Services Agreement): Same payment constitutes constructive fraudulent transfer
10. Breach of Fiduciary Duty—Corporate Waste (Management Services Agreement): Payment of $5.9M invoice when no obligation existed
11. Attorney's Fees and Costs
False Claims Act Settlement (January 2026)
In January 2026, Exactech agreed to pay $8 million to resolve U.S. government allegations under the False Claims Act that it knowingly sold defective knee, hip, and ankle implants to Medicare, Medicaid, and the Department of Veterans Affairs, even after learning as early as 2006 that some components had high failure rates. The settlement was announced shortly after approval of Exactech's Chapter 11 bankruptcy plan.
MDL-3044 Status (April 2026)
As of April 2026, there were 1,838 Exactech recall lawsuits pending in multidistrict litigation (MDL-3044) before the U.S. District Court for the Eastern District of New York, presided over by Senior District Judge Nicholas G. Garaufis. The MDL was established in October 2022. Bellwether trials had been scheduled (Gayle Tarloff and Geraldine Larson) but were paused by the bankruptcy automatic stay.
Financial Performance
Revenue History
- Annual Revenue (Recent Pre-Bankruptcy): Approximately $257–263 million
- 2016 Revenue by Segment: Extremities $100.3M (39%); Knee $76.2M (29.6%); Hip $46.7M (18.1%); Biologics ＆ Spine $19.5M (7.6%); Other $14.8M (5.7%)
- TPG Acquisition (2017): $625 million ($42.00 per share), representing a 31% premium to the October 20, 2017 closing price
- Estimated Valuation (Pre-Bankruptcy): Approximately $824 million
- Total Funding Raised: Approximately $85 million
- False Claims Act Settlement (2025/2026): $8 million
Company Overview
Corporate Information
Company Name: Exactech Inc.
Founded: 1985
Headquarters: 2320 NW 66th Court, Gainesville, Florida 32653, USA
Former Stock Exchange: Nasdaq (EXAC) — delisted 2018 upon TPG acquisition
Current Ownership: Funds managed by Strategic Value Partners (SVP) and Stellex Capital Management (100% since September 2025)
Former Ownership: TPG Capital (2017–2025)
Company Type: Private Company (Formerly Public)
Industry: Medical Devices / Orthopedic Implants / Joint Replacement
Employees: Approximately 900 (worldwide)
Leadership (2024–2026)
President ＆ CEO: Darin Johnson
- Led the company through the Chapter 11 restructuring process and transition to SVP/Stellex ownership
Former CEO: David Petty
- Son of founder Bill Petty; served as CEO during the TPG ownership period and Exactech Arena naming agreement (2016)
Founders:
- Dr. Bill Petty: Orthopedic surgeon and company visionary
- Betty Petty: Co-founder
- Dr. Gary Miller: Biomedical engineer and co-founder
Global Market ＆ Competitive Landscape
Target Markets
United States: Core market representing the majority of revenue; deep relationships with academic medical centers (including Duke University, Mayo Clinic Jacksonville) and community hospitals; strong presence in the Southeastern United States due to Gainesville headquarters
International: Products marketed in more than 30 countries across Europe, Latin America, Asia, and the Pacific
Primary Competitors
- Johnson ＆ Johnson (DePuy Synthes): Global orthopedic leader with comprehensive knee, hip, and shoulder portfolios
- Stryker: Major competitor in joint replacement and robotic-assisted surgery (Mako)
- Zimmer Biomet: Largest firm in the knee implant industry following the 2014 Zimmer-Biomet merger
- Smith ＆ Nephew: Strong knee and hip portfolio with planned robotics launch
- Wright Medical / Stryker: Dominant in extremities and ankle replacement
- Orthofix: Competitor in extremities and spine
Competitive Advantages
- Surgeon-Centric Heritage: Founded by orthopedic surgeons and biomedical engineers; deep clinical understanding embedded in product design
- Shoulder Excellence: Equinoxe system demonstrates significantly lower device-related revision rates vs. competitors in multiple government registries
- Ankle Innovation: First-to-market GPS Ankle navigation technology combined with 3D-printed tibial implants
- Active Intelligence® Platform: Smart technology ecosystem connecting data and devices across the surgical continuum
- New Owner Capital: SVP and Stellex Capital provide fresh capital and operational expertise to stabilize the business post-bankruptcy
2026 Outlook ＆ Strategic Priorities
Near-Term Objectives
- Operational Stabilization: Complete integration under SVP/Stellex ownership and restore supply chain and surgeon confidence
- Litigation Resolution: Manage legacy recall claims through the Exactech Settlement Trust while defending against the $1 billion TPG lawsuit and protecting ongoing operations
- Product Portfolio Renewal: Continue investing in next-generation shoulder, knee, hip, and ankle implants, including 3D-printed and navigation-enAbled technologies
- Surgeon Partnership Rebuilding: Reestablish Exactech's reputation as a trusted surgeon partner through clinical evidence and product quality
- International Expansion: Leverage the 30-country market presence to rebuild global distribution
Contact Information
Corporate Headquarters
Address: 2320 NW 66th Court, Gainesville, Florida 32653, USA
Phone: +1 (352) 377-1140
Online Presence
Website: www.exac.com
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