NEW YORK, Feb. 27, 2012 /PRNewswire/ -- Investors of Johnson & Johnson thought the $912mm charge in the 4th quarter of 2010 was a large number for the DePuy ASR Hip litigation; however the recent 4th quarter charge of $2.9bil partly attributed, according to CNJ Enterprises, to the DePuy Recall is 3 times last year's amount.
This has led many product liability experts to believe that the DePuy litigation could top Avandia as the top "class action" litigation for 2011. Industry experts are pointing towards the Sulzer Hip Recall of 2001 in which the Swiss Medical Device maker's recall placed in 31,000 patients settled for $1Bil. The DePuy Recall is 3 times the size of Sulzer. And with J&J executives recently deposed as to "what they knew", many believe that J&J's total exposure could top $3bil. Apparently, this was a major factor in J&J's CEO, Bill Weldon, deciding to step down.
One indication of the potential size of the settlement value for the DePuy victims is based on the lawsuit settlement funding industry's view of DePuy. Legal-Bay LLC -a leader in lawsuit funding for both Avandia and DePuy- recently announced that they have secured $2.5mm in financing just for DePuy pre-settlement funding clients.
Patty Kirby, Director of Client Relations at Legal-Bay commented, "Our research has indicated the average settlement amounts of the DePuy cases will top the Sulzer $200K average; cases in which the patient had the implant and revision surgery, could have values close to $1mm each. Based on this, we have been funding our DePuy clients with advances up to $50K to pay bills until they get their ultimate settlement."
Legal-Bay was accurate in their forecast in the Avandia litigation as well, when they predicted GlaxoSmithKline would settle for over $2bil. Recently, Glaxo settled 25,000 claims related to Avandia through mediation for what is being reported as close to $3bil. However, victims will not get their money for months.
Legal-Bay's website: lawsuitssettlementfunding.com and their toll free hotline 877.571.0405 have been busy taken lawsuit loan applications for the DePuy and Avandia litigation. If history proves right this does not bode well for J&J on DePuy.
|SOURCE CNJ Enterprises LLC|
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