A recent Wall Street Journal news story has suggested Johnson & Johnson may be the next large company facing a flurry of lawsuits, much like the mass litigation against Toyota and BP last summer.
Approximately 1,000 lawsuits have been filed in federal and state courts, accusing the device-maker of knowing about problems with its metal-on-metal hip joints before ceasing their production in 2009. J&J and its subsidiary, DePuy Orthopaedics, recalled the joints worldwide in fall 2010. J&J has denied the allegations and is fighting back, according to the report.
A Wells Fargo analyst cited in the report said the litigation could expose J&J to at least $1 billion in potential liability and other costs. Some lawyers are pushing for class-action status to combine all the complaints into a single suit.
A DePuy spokesperson has said J&J put aside approximately $280 million to cover surgeries and medical care for patients with recalled hip joints. It has also increased its reserves for product-liability costs by $570 million.
Read the Wall Street Journal report on Johnson & Johnson and its recalled hip implants.
Related Articles on Johnson & Johnson:
DePuy Parent Johnson & Johnson's CEO Receives 9% Pay Cut
FDA Sends Johnson & Johnson Letter of Warning
Hip Replacement Recall Lawsuits Against Johnson & Johnson to be Consolidated in Ohio
Approximately 1,000 lawsuits have been filed in federal and state courts, accusing the device-maker of knowing about problems with its metal-on-metal hip joints before ceasing their production in 2009. J&J and its subsidiary, DePuy Orthopaedics, recalled the joints worldwide in fall 2010. J&J has denied the allegations and is fighting back, according to the report.
A Wells Fargo analyst cited in the report said the litigation could expose J&J to at least $1 billion in potential liability and other costs. Some lawyers are pushing for class-action status to combine all the complaints into a single suit.
A DePuy spokesperson has said J&J put aside approximately $280 million to cover surgeries and medical care for patients with recalled hip joints. It has also increased its reserves for product-liability costs by $570 million.
Read the Wall Street Journal report on Johnson & Johnson and its recalled hip implants.
Related Articles on Johnson & Johnson:
DePuy Parent Johnson & Johnson's CEO Receives 9% Pay Cut
FDA Sends Johnson & Johnson Letter of Warning
Hip Replacement Recall Lawsuits Against Johnson & Johnson to be Consolidated in Ohio