Sunday, October 13, 2013

DePuy ASR Hip Metallosis Lawsuits Heading to Settlement?

The Legal Examiner

According to sources, Johnson & Johnson (J&J), and its subsidiary DePuy, are in active discussions to attempt a global settlement of their defective ASR metal on metal artificial hips.

J&J Potential Settlement North of $3 Billion 
Apparently J&J has discussed paying more than $3 billion to settle lawsuits over its recalled hip implants.  J&J is exposed to over 11,500 product liability lawsuits in the U.S. and is considering paying more than $300,000 per case.

According to experts, such a global settlement would surpass $3 billion if most plaintiffs accept the proposed terms, this valuation is 50% larger than previously proposed.  Still, according to industry watchers, a $3 Billion is a drop in the ocean for the profits that J&J has generated from the sale of the recalled devices.

Settlement is Dependent on Trial Outcomes 
Any settlement would be subjected to the outcome of 7 product-liability trials between September and January 2014.

J&J’s DePuy unit recalled 93,000 implants worldwide in 2010, including 37,000 in the U.S. The failure rate that patients and doctors were seeing dwarfed the official company failure rate

7 Bellwether Trials Scheduled
7 other trials are set for later in the year, the first is scheduled to begin September 9 in Cleveland. The plaintiff is Ann McCracken, 58, from New York, who needed two replacement surgeries or revisions after her ASR implant.

Trials also are scheduled in state courts in San Francisco in October; in Hackensack, New Jersey, in October and January; in West Palm Beach, Florida, in November; in Chicago in December; and in Los Angeles in January.

Federal Multidistrict Litigation 
There are about 8,000 federal cases consolidated in the multidistrict litigation or MDL, in the Northern District of Ohio, for the pre-trial consideration.

About 2,000 cases are pending in the California Judicial Council Coordinated Proceeding before Judge Richard Kramer in San Francisco.

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