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Johnson & Johnson to Offer $2.5 Billion Hip Device Settlement – NYTimes.com.

Johnson & Johnson to Offer $2.5 Billion Hip Device Settlement

By BARRY MEIER

Published: November 19, 2013

Lawyers for Johnson & Johnson and patients injured by a flawed hip implant were expected to introduce a multibillion-dollar plan Tuesday to settle thousands of lawsuits, but it was not clear whether the deal would satisfy enough claimants.

Under the agreement, according to people briefed on the plan, the medical products giant will pay some $2.475 billion in compensation to an estimated 8,000 patients who have been forced to have the all-metal artificial hip removed and replaced with another device.

Separately, the company has agreed to pay all medical costs related to such procedures, expenses that could raise the deal’s cost to Johnson & Johnson to some $3 billion, said those familiar with the proposal, who did not want to be identified.

The typical patient payment for pain and suffering caused by the device will be about $250,000 before legal fees, under the plan. Based on standard agreements, plaintiffs’ lawyers would receive about one-third of the overall payout, or more than $800 million, with those who negotiated the plan emerging as big winners.

Read the full NY Times article here.

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