TPG Hit With $1 Billion Fraud Suit Over Exactech Bankruptcy (2)

TPG Inc. forced medical implant maker Exactech Inc. into a bankruptcy restructuring as part of a wide-ranging scheme to dodge billions in liability through fraudulent transfers among shell entities, according to a lawsuit unsealed Friday.

A trustee handling thousands of injury claims against Exactech is suing one of its founders, TPG, and more than a dozen of the private equity giant’s principals and affiliates. The lawsuit says TPG ignored red flags about Exactech’s joint implants, covered up their dangerous defects, and fought recall demands from regulators before creating a web of sham holding companies and trying to game the bankruptcy ...