Bernstein Liebhard Reports on Nearly $1 Billion Write Off by J&J to Account for Costs Associated with DePuy Hip Recall
Only a few months after DePuy Orthopaedics, a division of Johnson & Johnson, recalled two hip replacement products – the ASR XL Acetabular system, used in total hip replacements, and the ASR Hip Resurfacing System, used in partial hip replacements – we have learned what the mega-company believes the DePuy hip recall will cost it, at least as of now. The answer: $922 million.
Financial statements just made public by Johnson & Johnson reveal that Johnson & Johnson reduced its fourth quarter 2010 net earnings by $922 million to account for “the net impact of litigation settlements, product liability expense and costs associated with” the DePuy hip recall.
The $922 million write-off for the DePuy hip recall exceeds the $807 million of U.S. fourth quarter sales by DePuy Orthopaedics, but is dwarfed by the $24.6 billion in 2010 worldwide sales of just the company’s medical devices and diagnostics, as reported by Johnson & Johnson. Total 2010 worldwide sales by Johnson & Johnson exceeded $61.5 billion.
The amount that Johnson & Johnson is writing-off for the DePuy hip recall [insert link to http://www.consumerinjurylawyers.com/DePuy/DePuy-Hip-A-Closer-Look.html]does not cap the amount that can be recovered by the thousands and thousands of individuals who were implanted with the DePuy hip and who are facing revision surgery. The ultimate recovery by DePuy hip sufferers will be determined in settlement discussions with DePuy – and, if DePuy and those individuals who were implanted with the DePuy hip do not agree to settle, by the courts.
In announcing these financial statements, Johnson & Johnson’s chairman and chief executive officer William C. Weldon said that “2010 was a challenging year.” He no doubt was referring to the DePuy hip recall and to the company he runs. But individuals who have been implanted with a DePuy hip replacement product already know that 2010 was a challenging year.
Bernstein Liebhard LLP is actively investigating and litigating cases on behalf of its clients who have undergone DePuy hip implant surgery. Since DePuy was forced to recall its defective hip implant in August, Bernstein Liebhard has provided a wealth of consumer information concerning the defective DePuy hip implant on its website, consumerinjurylawyers.com. If you or a loved one have had hip replacement surgery and have been implanted with a defective DePuy hip, you may be entitled to compensation for medical bills, pain and suffering, lost wages, and other injuries.
For more information about filing a DePuy hip recall lawsuit, contact an attorney at Bernstein Liebhard LLP at (877) 779-1414 or at [email protected]
Bernstein Liebhard LLP
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Felecia L. Stern, Esq.
Bernstein Liebhard LLP