J&J Will Propose a $4 Billion DePuy Hip Implant Settlement for Injured Plaintiffs

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DePuy of Johnson & JohnsonJohnson & Johnson manufacturer of DePuy Orthopedics Inc., ASR Hip Implant Products will reportedly propose a $4 billion DePuy hip implant settlement to resolve more than 7,500 lawsuits that have been filed against the company in both state and federal courts, according to sources connected to the deal. These sources have chosen to remain anonymous because the official announcement of this settlement is expected to occur sometime next week in a federal court in Toledo, Ohio, where it will await approval from U.S. District Judge David Katz. Judge Katz is overseeing federal DePuy litigation (In re DePuy Orthopedics Inc., ASR Hip Implant Products Liability Litigation, 10-MD-2197).

Terms of the Settlement

Once officially proposed, the multi-billion dollar settlement will mark the largest settlement for a medical device in U.S. history. According to the terms of the settlement, however, at least 94 percent of the plaintiffs must agree to accept the offer – otherwise, Johnson & Johnson may pull this settlement offer off the table. If that happens, all of the cases would proceed to trial.

It’s important to point out that the proposed $4 billion DePuy hip implant settlement is uncapped, which means that it would allow future plaintiffs to file claims against Johnson & Johnson to seek compensation for alleged DePuy complications. Additionally, this settlement offer is not associated with the approximately 4,500 DePuy hip implant lawsuits that will be handled in a second round of litigation; these remaining cases pertain to plaintiffs who may need future revision surgery.

According to the sources, the plaintiffs who choose to accept Johnson & Johnson’s settlement offer will, on average, receive payouts of about $300,000. The precise amount of the payouts to each plaintiff will specifically depend on the severity of the plaintiff’s injuries, the plaintiff’s age and the number of revision surgeries the plaintiff had to undergo as a result of his hip implant complications.

As additional news of this groundbreaking settlement offer becomes available, Case Funding Inc. will continue reporting on how it may impact the plaintiffs in these cases.

Lawsuits Allege Serious Hip Implant Complications 

To date, about 12,000 DePuy hip implant lawsuits have been filed against Johnson & Johnson in the U.S. These cases all generally contend that Johnson & Johnson failed to conduct adequate safety testing on the DePuy hip implants and that the company was aware of the implants’ significant rates of failure and, yet, failed to sufficiently warn the public about them.

In fact, while some research has indicated that the DePuy hip implants have a failure rate of about 12 percent within 5 years of implantation; copies of some of Johnson & Johnson’s internal documents that have been obtained by the plaintiffs reveal that the company was aware of a failure rate of about 37 percent within 4.6 years of implantation.

As such reports became public, in 2010; Johnson & Johnson issued a worldwide recall of its DePuy hip implants, which affected a total of 93,000 units – with about 37,000 of these being in the U.S.