Posted on Jan 23, 2013
In a front-page story, the New York Times (1/23, A1, Meier, Subscription Publication, 1.68M) continues coverage of the lawsuits Johnson & Johnson faces over its 2011 hip implants recall, noting that newly disclosed court records revealed that an "internal analysis" J&J conducted shortly after issuing the recall "estimated that the all-metal device would fail within five years in nearly 40 percent of patients who received it." A trial, which is slated to begin Friday, will consider what "officials of Johnson & Johnson's DePuy Orthopaedics division knew about the device's problem before its recall" and what, if any, actions they took to remedy the problem. The forthcoming trial is also expected to "provide a guide to the consequences" of the Articular Surface Replacement device issue both in terms of J&J's "finances and its reputation."
Bloomberg News (1/23, Voreacos, Feeley) notes that J&J's admission on the internal review's estimation that 37 percent of the devices would "fail within 4.6 years," was revealed in "documents unsealed Jan. 18 in the lawsuit of Loren Kransky in state court in Los Angeles. Jurors are scheduled to hear opening statements on Jan. 25 in Kransky's case, the first to go to trial against J&J."
The Wall Street Journal (1/23, B2, Rockoff, Subscription Publication, 2.29M) adds that a J&J spokesperson said that the company is presently facing about 10,000 lawsuits and thus far, it has incurred about $900 million in charges related to the all-metal ASR devices. Ultimately, analysts are projecting that J&J's legal liability costs will surpass $1 billion.