Johnson & Johnson Reserves $992 Million for Settlement Costs
Phoenix, Arizona—Johnson & Johnson released financial disclosure statements this week revealing it has reserved $992 million for a settlement fund and to cover litigation expenses related to its defective DePuy ASR™ XL Acetabular System. The DePuy ASR hip device was recalled last year amid reports that the medical device is failing at high rates.
Initial reports indicated that the revision rate among patients who received the DePuy ASR device was between 12 to 13 percent. We believe that number will be meaningfully higher as patients consult with their surgeons on the dangers of the defective device.
The U.S. Judicial Panel on Multidistrict Litigation has consolidated all pending federal cases before U.S. District Judge David A. Katz in the U.S. District Court for the Northern District of Ohio. Judge Katz will oversee pretrial proceedings in the consolidated federal cases.
The litigation fund established by Johnson & Johnson covers the legal costs associated with defending the cases and future liability for settlements or jury verdicts. Based on the severe injuries associated with these devices, and the number of people impacted by the defects, it is very likely that the company's liability will be substantially greater than the $992 million set aside for this litigation fund.