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