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J&J Reportedly Will Pay $4B to Settle DePuy ASR Hip Device Lawsuits

Filed November 13th, 2013 Laurie

Johnson & Johnson (J&J) has reportedly agreed to pay more than $4 billion to settle thousands of lawsuits over the DePuy ASR hip device. This is according to people familiar with the deal who spoke anonymously with Bloomberg News. It would be the largest settlement of U.S. legal claims for a medical device in history.

The settlement will close out more than 7,500 lawsuits filed in federal and state courts. The Plaintiffs in the cases alleged that the ASR hip devices were defective. DePuy recalled 93,000 of the implants in August 2010, saying 12 percent failed within five years. Internal J&J documents show that 37 percent of the devices failed after 4.6 years. Last year, the failure rate in Australia reached 44 percent within seven years, according to Bloomberg News.

Plaintiffs will receive an average of $300,000 or more each as part of the agreement, which doesn’t bar patients whose artificial hips fail in the future from filing lawsuits against J&J. The settlement, expected to be announced next week in federal court in Toledo, Ohio, is uncapped in terms of its total value, Bloomberg News reported.

“It’s certainly a lot of money, but there are a whole bunch of people who contend these hips caused grievous injuries,” Carl Tobias, who teaches product-liability law at the University of Richmond in Virginia, told Bloomberg News. “So some of them may feel like this isn’t enough compensation for what they’ve gone through.”

J&J earlier this m0nth agreed to pay $2.2 billion to resolve criminal and civil allegations over its marketing of Risperdal and other drugs.

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