Sulzer Orthopedics Inc.'s $1 billion settlement proposal is "fair, adequate and reasonable," U.S. District Judge Kathleen M. O'Malley decided Wednesday. The company, which is a subsidiary of Switzerland's Sulzer Medica, offered the amount to settle thousands of lawsuits stemming from the recalls of the company's popular hip and knee replacement devices.

Sulzer recalled over 17,500 artificial hips when the company discovered that an oily substance was inadvertently left on the devices during the manufacturing process. The residue prevented bonding between a patient's bone and the device, leading to pain in the inner thigh and groin, pain when standing, and difficulty placing weight on the leg. The plaintiffs have the right to "opt out" of the settlement until May 14.