DePuy Settlement for ASR Hip Replacements to Move Forward

Johnson & Johnson’s DePuy Orthopedic subsidiary has agreed to move forward with a hip replacement settlement that will result in billions being paid to resolve lawsuits over DePuy ASR implants.  

In a settlement alert (PDF) posted earlier this month, it was noted that DePuy has decided not to exercise it’s “Walk Away Right” under the terms of the agreement, which could have allowed the manufacturer to cancel the deal if less than 94% of those eligible claimants failed to enroll in the settlement program.

The move allows the Claims Administrator to move forward with the review and processing of records to determine if individual claimants are eligible for payment. Following each review, claimants will receive a Program Notice to let them know the status or outcome, but the Administrator indicates that the exact timing and amount of compensation will depend on a number of factors and circumstances specific to each claim.

Johnson & Johnson’s DePuy Orthopaedics division currently faces about 12,000 hip replacement lawsuits filed in state and federal courts throughout the United States following the recall of the DePuy ASR XL Acetabular Hip System in 2010.

The metal-on-metal hip replacement system was removed from the market after data suggested that about one out of every eight would fail within five years. However, more recent data has suggested that the DePuy hip failure rate may ultimately be substantially higher, likely ending up in the 35% to 45% range.

All of the complaints involve similar allegations that DePuy designed and sold a defective and unreasonably dangerous hip implant. The metal-on-metal design causes the release of metallic debris into the body as the metal parts rub against each other during normal wear and tear, according to claims presented by individuals who experienced catastrophic failure of their implant.

In November 2013, a DePuy ASR settlement program was announced, which will result in the manufacturer paying at least $2.4 billion to resolve claims, but the total benefits that may be available under the offer may reach as high as $4 billion after accounting for medical expense reimbursements and other costs.

Under terms of the agreement, individuals who underwent hip revision surgery prior to August 31, 2013 due to problems with a DePuy ASR hip may be eligible to pursue compensation through the program that will provide an average of about $250,000 per claim, with additional damages available for “extraordinary” injuries.

Claimants were required to file by January 6 to be a part of the settlement.