Johnson & Johnson is examining whether to shell out about $250 million to settle more lawsuits over its DePuy unit’s recalled ASR hip replacement system, Bloomberg News reported Thursday. Two people familiar with the potential accord spoke to Bloomberg on the condition of anonymity, stating they were not authorized to speak about the case publicly.
If the settlement moves forward, it would resolve more than 1,000 lawsuits by people who were forced to have the implants surgically removed after August 2013, and were thus excluded from last year’s blockbuster settlement of similar claims. Under terms of that settlement, which was reached last November, J&J agreed to pay $2.5 billion to settle approximately 8,000 lawsuits by patients who had received ASR devices prior to August 2013. The ASR implants were recalled in 2010.
According to Bloomberg’s sources, the company would likely extend the same terms of last year’s ASR settlement to a new accord. Under those terms, J&J agreed to pay an average $250,000 per revision surgery and cover plaintiffs’ related medical costs.
J&J is currently facing almost 8,000 lawsuits consolidated in federal court in Dallas for failure of another DePuy hip replacement device. That device—the Pinnacle metal-on-metal system—has not been recalled.
Both the DePuy ASR and Pinnacle hip devices have been found to fail at alarming rates. Other manufacturers of metal-on-metal hip devices, such as Biomet, Smith & Nephew, Stryker, Wright Medical Technology, and Zimmer, also face lawsuits from patients who have had revision surgery or have faced other adverse medical conditions.