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

by Christopher Freeburn | November 13, 2013 9:48 am

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

JohnsonJohnsonLogo e1282585796958 Johnson & Johnson to Pay $4B to Resolve Hip Implant Claims[1]Sources tell Bloomberg that Johnson & Johnson (JNJ[2]) has negotiated a settlement to more than 7,500 separate lawsuits[3] 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.

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[4].

Shares of JNJ sank modestly in Wednesday morning trading.

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2010/08/JohnsonJohnsonLogo-e1282585796958.jpg
  2. JNJ: http://studio-5.financialcontent.com/investplace/quote?Symbol=JNJ
  3. negotiated a settlement to more than 7,500 separate lawsuits: http://www.businessweek.com/news/2013-11-12/j-and-j-said-to-reach-4-billion-settlement-of-hip-implant-suits-1
  4. over alleged improper marketing of its Risperdal drug: http://investorplace.com/2013/11/johnson-johnson-pay-2b-settle-false-marketing-cases/#.UoOQTpG1Kf0

Source URL: http://investorplace.com/2013/11/johnson-johnson-pay-4b-resolve-hip-implant-claims/
Short URL: http://invstplc.com/1fr64sD