Zimmer Biomet, Investors Reach $50 Million Deal Over Stock Drop

Zimmer Biomet Holdings Inc. asked an Indiana federal judge to preliminarily approve a $50 million settlement and to certify a class of investors on various securities fraud claims.

While the $50 million amount represents only 8% of their maximum potential recovery, this outcome is “the best-case scenario,” the plaintiffs said in a motion filed Tuesday in the U.S. District Court for the Northern District of Indiana.

The investors alleged that Zimmer lied to them and issued false or misleading financial projections that didn’t disclose known quality compliance issues at one of its manufacturing centers. When Zimmer eventually disclosed the problems ...