Hip Recall Hits Johnson & Johnson's Bottom Line

Johnson & Johnson's DePuy Orthopaedics unit issued an extensive recall of its “metal-on-metal” hip replacement devices in 2010 after they shed metal fragments, causing disabling injuries. The corporation took quarterly charges of more than $3 billion, largely related to the recall of artificial hips, and gave a 2012 earnings forecast below analysts’ estimates on Tuesday. The recalled ASR model should not be confused with the Pinnacle metal-on-metal hip implant. The Pinnacle model has not been recalled but many lawsuits have been filed citing the same defects as the recalled model.

The fourth-quarter charges will allow money to be set aside for patients involved in the product liability MDL.

“The hip recalls worry me because their eventual costs are unknown,” said Jeff Jonas, an analyst at Gabelli & Company, who noted that the fourth-quarter charges included $800 million for medical costs of the recall. Johnson & Johnson has paid the costs associated with revision surgeries for many plaintiffs who have been injured by the ASR model. The corporation has not been so kind to those people who were implanted with the Pinnacle model. 

The company forecast 2012 earnings of $5.05 to $5.15 a share, compared with the consensus Wall Street view of $5.21. Johnson & Johnson reported better-than-expected fourth-quarter earnings, helped by favorable taxes and sales of new prescription drugs. The company earned $218 million, or 8 cents a share, in the quarter. That compares with $1.9 billion, or 70 cents a share, a year earlier, when it also took charges for recalls of hip replacement devices.

Johnson & Johnson, which is based in New Brunswick, N.J., said global sales rose 3.9 percent in the quarter, to $16.26 billion, slightly below analysts’ target. Sometimes, the only way to make large corporations aware of the pain and damage they have caused to the public is by lawsuits that affect their bottom dollar. It appears the ASR MDL lawsuits are doing just that. 

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. Our firm is currently investigating claims for those people who have been implanted with DePuy hip replacement devices, both ASR and Pinnacle. If you would like a free case evaluation, please contact Booth Samuels toll free at 1-866-515-8880 or at booths@pittmandutton.com.

DePuy Pinnacle MDL Venue Set

On May 16, the Multi-District Litigation Panel heard oral arguments regarding venue placement for the DePuy Pinnacle MDL in Louisville, KY. All claims filed in federal court against DePuy and its parent company, Johnson & Johnson, are going to be consolidated under one Judge in one venue for purposes of discovery and pre-trial motions.

Both Plaintiffs’ and Defendants’ attorneys were present at the DePuy Pinnacle MDL venue hearing. Although Defense counsel in their filing argued for venue to be placed in the Northern District of Texas (Dallas), they orally argued for the Southern District of Texas (Houston). Of the nine Plaintiffs’ counsel arguing, eight either outright argued for or deferred for the MDL to be placed in Houston. Chris Hellums, of Pittman, Dutton & Hellums, P.C., argued for placement in the Northern District of Alabama (Birmingham). Mr. Hellums cited the District Judiciary’s expertise and familiarity with complex products liability cases and the convenience of the location to all parties as reasons to award the MDL to Birmingham.

Interestingly, the MDL Panel did not send the MDL to either of the two Districts that were orally argued for, but instead sent the DePuy Pinnacle MDL to the Northern District of Texas. The MDL venue Order was filed yesterday.

Johnson & Johnson CEO Answers to Recalls

Johnson & Johnson's CEO says he hopes most of the company's product recalls are behind it, but he can't use the word never. William Weldon has run the health care giant since 2002. He says J&J has learned some lessons, invested heavily in improving quality and will work to regain consumer confidence.

Since September 2009, the company has had about two dozen recalls of prescription and nonprescription medicines, replacement hips, contact lenses and diabetes test strips. These recalls include recalls from J&J’s subsidiary companies, such as DePuy. One of its consumer health products factories is still being upgraded a year after it was closed, and two others are under close scrutiny by federal regulators. Even Congress has been investigating J&J's handling of recalls. Weldon will face shareholders at J&J's annual meeting April 28.

Among the many products recalled by the corporate giant is the DePuy ASR XL hip device. This hip prosthesis is a metal-on-metal device which causes, among other things, pain, inflammation and swelling. The constant friction between the metal parts releases cobalt and chromium into the blood stream and body. This in turn results in metallosis, a dangerous form of poisoning which can lead to rashes, soft-tissue damage, pseudo-tumors and neurological disorders.

DePuy also manufactures a Pinnacle Hip System. Some of the Pinnacle hips are metal-on-metal, which are extremely similar to the ASR hip device. Lawsuits have been filed by patients who were implanted with the Pinnacle device alleging the Pinnacle has caused similar damages to those patients who were implanted with the ASR hip devices. Our firm is currently investigating claims for those people who have been implanted with DePuy hip replacement devices, both ASR and Pinnacle. If you would like a free case evaluation, please contact Booth Samuels at toll free 1-866-515-8880 or at booths@pittmandutton.com.

DePuy Pinnacle MDL News

Since DePuy was forced to recall the defective ASR hip implants in August, an MDL was formed to handle those lawsuits. Attorneys who have filed lawsuits on behalf of clients who have been injured by DePuy’s Pinnacle Hip System have petitioned the U.S. Judicial Panel on Multidistrict Litigation that all of the federal DePuy Pinnacle lawsuits be consolidated and centralized before a single District Judge.  If the panel agrees to form a DePuy Pinnacle MDL, a new MDL will be formed that will solely focus on DePuy Pinnacle lawsuits. The likelihood that an MDL for Pinnacles would be attached to or included with the ASR MDL is highly unlikely.  

This MDL will function in a similar manner as the MDL for ASR’s. All discovery and pretrial motions will be consolidated under one District Judge and the lawsuits will revert back to their original districts for trial, if necessary. Injuries from the Pinnacle Hip System are similar to ASR injuries: pain, swelling, inflammation and metal poisoning. High levels of cobalt and chromium found in blood and urine samples are causing the most alarm as metallosis can cause rashes, soft-tissue damage and pseudo-tumors.

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. Our firm is currently investigating claims for those people who have been implanted with DePuy hip replacement devices, both ASR and Pinnacle. If you would like a free case evaluation, please contact Booth Samuels at toll free 1-866-515-8880 or at booths@pittmandutton.com.

DEPUY PINNACLE RECALL ON THE HORIZON???

In the fall of 2010, a recall was implemented for the DePuy ASR hip replacement system, causing the public to question DePuy’s reliability as the leading medical device manufacturer in the world. DePuy is a subsidiary of Johnson & Johnson. When the recall was initiated, the failure rate of the ASR system was estimated to be 12-13% among patients. DePuy has another hip replacement system called the Pinnacle which is similar to the recalled ASR model.

The U.S. Food and Drug Administration (FDA) allowed the marketing of the DePuy ASR system to the public through the 510(k) approval process on the basis that the device was substantially equivalent to the DePuy Pinnacle hip replacement system already approved for distribution. The 510(k) approval process allows a medical device to be placed on the market without being subjected to necessary clinical trials. The ASR system is a metal-on-metal hip replacement device that utilizes a metal ball and metal lined cup to replicate the natural movement of a hip joint. Some Pinnacle hips are also metal-on-metal because the device can include a metal liner. DePuy claimed that metal-on-metal hip replacements have increased durability.

The most prevalent and serious problem associated with metal-on-metal hips is metallosis, which can lead to soft-tissue damage, rashes and pseudo-tumors. Another common complaint of the DePuy Pinnacle hip replacement system is loosening of the device. One of the more serious complications is bacterial infection, occurring more often in elderly or obese patients. In addition, blood clot formation is another life-threatening condition, especially if the clot travels through the bloodstream and causes a stroke.

Although a DePuy Pinnacle hip recall has not been issued, patients who have been implanted with the DePuy Pinnacle Acetabular Cup System may have legal recourse. Several DePuy Pinnacle lawsuits have already been filed, and patients experiencing DePuy Pinnacle problems with the metal-on-metal systems may be able to participate in a similar legal action. Our firm is currently investigating claims for those people who have been implanted with DePuy hip replacement devices, both ASR and Pinnacle. If you would like a free case evaluation, please contact Booth Samuels at toll free 1-866-515-8880 or at booths@pittmandutton.com.