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New Report Says J&J Willing to Pay $400 Million in Pinnacle Hip Cases

Posted on December 13, 2018 by Medtech[y] Staff


According to a report from Bloomberg, Johnson & Johnson is considering paying more than $400 million to settle a portion of the thousands of consumers’ allegations that the company sold defective artificial hips and hid the health risks of the devices. The metal-on-metal hip implants were taken off the market in 2013.

These are the first settlements in the seven-year litigation over the Pinnacle Implants.

Here are the key details:

  1. J&J, the world’s largest health-care company has settled approximately 3,300 of 10,000 lawsuits against its Pinnacle hip-replacement devices.
  2. J&J has reportedly agreed to pay an average of $125,000 per case to resolve ~⅓ of the Pinnacle hip suits. An average payout of $125,000 for $3,000 cases would cost J&J approximately $413 million.
  3. J&J is seeking to resolve the remaining Pinnacle cases before a trial in Dallas gets underway in Dallas, where five Pinnacle-hip recipients will press claims the companies rushed the devices to market with little testing and misled doctors about the devices’ safety profiles. J&J has denied those claims and said it developed and marketed the hips responsibly.
  4. Over the past two years, juries in federal court in Dallas have ordered the company to pay at least $1.7 billion in damages over claims related to faulty hips. Several verdicts have been thrown out on appeal or reduced by trial judges, including a $1 billion award to six hip recipients that was slashed almost in half.
  5. Rather than seeking one global settlement of Pinnacle claims, J&J is settling separate groups of cases handled by individual lawyers, U.S. District Judge Ed Kinkeade in Dallas said in a court filing. The company is using the same tactic to resolve lawsuits over its vaginal mesh inserts.
  6. Under terms of the settlements, plaintiffs’ lawyers will get a lump sum to distribute to their clients. Consumers who had the Pinnacle devices surgically removed would receive more than others who’d had minor adjustments made to the inserts, the people said.