Johnson & Johnson to Pay $4B to Resolve Hip Implant Claims

But it will still have to deal with new claims

   

Johnson & Johnson to Pay $4B to Resolve Hip Implant Claims

JohnsonJohnsonLogo e1282585796958 Johnson & Johnson to Pay $4B to Resolve Hip Implant ClaimsSources tell Bloomberg that Johnson & Johnson (JNJ) has negotiated a settlement to more than 7,500 separate lawsuits over defective hip implants made by its DePuy division.

The consumer products giant has reportedly agreed to average payments of about $300,000 for each implant. The entire deal will cost JNJ in excess of $4 billion. The agreement does not feature a cap, meaning that more patients can seek compensation if their implants malfunction after the agreement is finalized.

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Recalling the hip implants has cost JNJ about $993 million. The company faced years of prolonged legal battles in both state and federal courts over the defective devices.

JNJ is expected to submit the deal to a federal court in Ohio next week.

Earlier this month, JNJ agreed to a $2.2 billion settlement with federal regulators regarding civil and criminal charges over alleged improper marketing of its Risperdal drug.

Shares of JNJ sank modestly in Wednesday morning trading.


Article printed from InvestorPlace Media, http://investorplace.com/2013/11/johnson-johnson-pay-4b-resolve-hip-implant-claims/.

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