Bloomberg reported on November 12, 2013 that Johnson & Johnson (J&J) has agreed to pay more than $4 billion to settle thousands of ASR (Articular Surface Replacement) metal-on-metal hip lawsuits. That comes to about $350, 000 per case.
Previous settlement rumors were in the $2 billion range. The company settled a $2.2 billion case with the feds and pled guilty to a misdemeanor a couple of weeks ago over false marketing of drugs. It’s getting to be an expensive Thanksgiving season at J&J. But the settlements may also remove an overhang of suspicion over a company that has long prided itself on a reputation of good corporate citizenship.
J&J’s DePuy Orthopaedics recalled 93, 000 implants in 2010, including 37, 000 in the U.S., after more than 12% failed within five years. That rate is climbing, along with lawsuits by patients blaming the chromium and cobalt devices for pain, metal debris and replacement surgeries.
The company declined to comment on the Bloomberg story which cited “three people familiar with the deal, ” who were unauthorized to speak publicly.
The reported deal will resolve more than 7, 500 lawsuits in federal and state courts against DePuy. The agreement, according to Bloomberg, doesn’t bar patients whose hips fail in the future from seeking compensation from J&J. That means the settlement, which is expected to be announced the week of November 18, is uncapped in terms of its total value because lawyers for patients are still trying to estimate how many of the 12, 000 related lawsuits involve patients who had a replacement. Lawyers believe that number may be 7, 000 to 8, 000 cases.
If the deal is announced, it would be the largest settlement ever involving hip implants. Winterthur, Switzerland-based Sulzer AG paid $1 billion to settle lawsuits in 2001.
J&J has spent about $993 million on medical costs and informing patients and surgeons about the recall, Lorie Gawreluk, a spokeswoman for the company, said earlier this year. The company set aside an undisclosed amount for litigation, which it increased before June 30.
The reported settlement would come after the company lost one lawsuit in a California court, but won a second in Chicago. A third was settled.
