Record $2.5 Billion Settlement Reached In Depuy Hip Implant Litigation Against Johnson & Johnson

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Toledo, Ohio – November 19, 2013 – Today, Johnson & Johnson and attorneys representing the plaintiffs announced a preliminarily settlement of more than $2.5 billion in litigation over Johnson & Johnson’s recalled DePuy Orthopaedics, Inc. ASR hip implant systems.  This is largest settlement ever reached in litigation involving a medical device.  The proposed settlement was presented to United States District Court Judge David Katz in Toledo, Ohio who presides over the federal court multidistrict litigation against the company and must approve the settlement.

Panish Shea & Boyle LLP represents more than 325 clients that received the defective ASR hip implant systems in their state and federal litigation against DePuy, a subsidiary of Johnson & Johnson.  The ASR implants were recalled in August 2010 after they showed a higher than expected rate of failure.  More than 11,000 lawsuits have been filed against DePuy.

Under the terms of the proposed settlement, plaintiffs who have had to replace their DePuy hip implants will receive a settlement amount which will depend on various factors, including their medical condition, age and whether they have suffered any economic loss as a result of having their implant replaced.  The New York Times reports that the “typical patient payment” for pain and suffering will be approximately $250,000.  In addition to those payments, Johnson & Johnson will also pay any medical expenses the plaintiffs have incurred relating to the replacement of the implants.  The settlement does not preclude individuals who have a future revision surgery from making a claim and those not wishing to participate in the settlement can opt-out.

On March 8, 2013, along with co-counsel, Panish Shea & Boyle LLP partner Brian Panish obtained the only verdict to date against DePuy in the first case to go to trial involving the faulty hip implants.  In that case, Kransky v. DePuy, Inc. (BC456086), a Los Angeles Superior Court jury awarded Loren Kransky $8.3 million dollars, finding that his ASR implant, which had to be replaced, was defective.  Mr. Kransky was also represented at trial by Mike Kelly of Walkup, Melodia, Kelly & Schoenberger and John Gomez of the Gomez Law Firm.

As to the settlement, Mr. Panish stated “this settlement is the result of the hard work of many attorneys and the verdict in the Kransky case which provided a significant incentive for Johnson & Johnson to reach a global resolution in this litigation.”

In addition to successfully trying the first case involving the recalled DePuy hip implants, Panish Shea & Boyle LLP attorneys have served in leadership roles in the nationwide litigation.  The firm’s Director of Litigation, the Honorable Peter J. Polos (ret.), serves on the Plaintiff’s Leadership Committee in the federal multi district litigation pending in Toledo, Ohio and on the Plaintiff’s Steering Committee for the consolidated actions in California.  Firm attorney Peter Kaufman has also been directing Panish Shea & Boyle LLP’s efforts in the DePuy litigation.

CONTACT:

Peter Polos: polos@psblaw.com

Peter Kaufman: kaufman@psblaw.com

Brian Panish: panish@psblaw.com

Panish Shea & Boyle LLP

11111 Santa Monica Boulevard, Suite 700

Los Angeles, CA  90025

Telephone: 310.477.1700