Thursday, January 27, 2011
Depuy Reports a $1Billion dollar Set aside for Potential Settlement Costs and Litigation
Johnson & Johnson announced its fourth quarter earnings this week, which included a charge of $922 million to cover litigation costs and potential settlements associated with a DePuy hip recall issued last year.
According to an earnings statement released on Tuesday, Johnson & Johnson reported net earnings of $1.94 billion, which was a 12 percent drop from the previous year. The net earnings were greatly affected by the DePuy ASR hip recall litigation set aside of nearly $1 billion, which will cover some of the company’s anticipated DePuy hip settlement costs, litigation defense expenses and other costs associated with the DePuy hip recall.
In addition to the DePuy ASR lawsuits, Johnson & Johnson also faces potential lawsuits over DePuy Pinnacle hip replacements. Although a recall for this other hip replacement has not been issued, a handful of DePuy Pinnacle hip lawsuits have already been filed by consumers who have experienced metallosis or other problems from the metal-on-metal hip replacement parts wearing down
Posted by Connie at 2:18 PM