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Question - TecQuirk is a publicly held manufacturer of medical equipment. Some of the goods are high-tech machines used in hospitals and in laser eye surgery, while other products are consumer-use medical devices sold through drug stores, big box stores, and directly to customers online. The company provides a one year warranty on every product sold. Each year the company gets some returns of the consumer goods for a variety of reasons, and occasionally has warranty claims on the high-tech machines. TecQuirk provides a defined benefit pension plan for employees.
Last year the company learned that several patients had been blinded when their laser eye surgery was used on them. Lawyers for the injured patients just filed a class action lawsuit against the company, requesting at least $500 million in damages. The laser machines are manufactured by a subsidiary of TecQuirk that they acquired three years ago for $1 billion dollars.
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