Personal Injury Law

DePuy hip implant recall leads to millions set aside for potential settlements

When Johnson & Johnson recently announced its earnings for this quarter earlier this week, an important point highlighted was that it included a charge of $922 million to cover DePuy hip recall litigation costs and potential product liability lawsuit settlements. Following last year?s DePuy hip replacement product recall, Johnson & Johnson and their subsidiary DePuy Orthopaedics face an increasing number of product liability lawsuits over DePuy ASR hip replacements. The DePuy hip implants were linked to a higher than usual failure rate within a few years of the implant, often requiring additional revision surgery.

Johnson & Johnson?s recent earnings report demonstrated a significant drop and his earnings were greatly affected by the DePuy hip recall litigation set aside. The set aside amount of almost $1 billion will cover only some of the company?s anticipated DePuy hip lawsuit settlement costs, litigation defense expenses, and other DePuy hip recall costs. It is expected that thousands of cases will be involved in the product liability litigation as DePuy hip recall lawyers continue to investigate claims and file new claims for individuals who received one of the defective hip implants. Experts estimate that the drug company will eventually have to pay out much more than the $922 million it set aside to address the claims filed by people who face a risk of DePuy hip complications.

Full post as published by Illinois Injury Lawyer Blog on January 28, 2011 (boomark / email).