Johnson & Johnson (NYSE:JNJ) has reportedly reached a $4 billion settlement to resolve thousands of lawsuits stemming from a 2010 recall related to faulty hip implants.
The deal, which would cover as many as 8,000 outstanding federal and state suits against J&J’s DePuy unit, would be considered the largest medical device settlement in the U.S., according to reports by both Bloomberg and The New York Times.
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Patients claim that an all-metal hip replacement, known as Articular Surface Replacement (ASR), wears out after just a few years -- a much shorter success rate compared with other implants on the market.
The hip replacement was recalled in mid-2010 after U.S. safety regulators received a number of complaints regarding its short lifespan that led to early failure rates. Patients also claimed the device, comprised of a metal ball and cup, leaves metal particles embedded in surrounding tissue as it wears down.
The settlement still needs court approval but lawyers told The Times that it will likely be officially announced in the coming days. The agreement would call for each patient to receive about $350,000 on average in compensation and would include patients that have already had the hip replaced, the reports say.
A spokeswoman from DePuy declined to comment.
The deal would mark J&J’s second multibillion-dollar agreement this month. The New Brunswick, N.J.-based company agreed to pay $2.2 billion earlier to resolve a probe into its marketing of its schizophrenia drug Risperdal.
Shares of the drug giant slumped close to 1% in early trade to around $92.66. They're up about 32% on the year.