It’s Official – DePuy Settles Hip Lawsuits for $2.5 Billion

It’s official. DePuy Orthopaedics, Inc. announced on November 19, 2013, that the company and a court-appointed committee of lawyers representing ASR hip plaintiffs have reached a $2.5 billion deal to compensate patients with failed hip revision surgeries.

According to Bloomberg, Susan Sharko, one of the company’s lawyers, told U.S. District Judge David Katz in Toledo, Ohio, that the company would pay an average of about $250, 000 for each surgery and cover related medical costs for an estimated 8, 000 patients. It’s not the $4 billion previously reported by Bloomberg, but the amount could go higher because the settlement doesn’t bar patients whose hips fail in the future from seeking compensation. That may add billions of dollars to the ultimate value of the settlement.

Andrew Ekdahl, head of DePuySynthes Joint Reconstruction, said the settlement program provides compensation for eligible patients without the delay and uncertainty of protracted litigation. “We are committed to the well-being of ASR patients, as demonstrated by the voluntary recall and the program providing support for recall-related care.”

The company issued a statement saying the settlement agreement will help bring to a close significant ASR litigation activity in the U.S. However, some lawsuits in the U.S. will remain.” DePuy will continue to defend against remaining claims and believes its actions related to the ASR Hip System have been appropriate and responsible, ” said the statement.

In August 2010, the company said it issued a voluntary recall of the ASR hip system after receiving new information from the UK National Joint Registry as part of the company’s ongoing surveillance of post-market data concerning the ASR, which showed a revision rate that was not in line with data previously reported in that registry. “The product continues to perform well in some patients. Since the recall decision was made, DePuy has worked to provide patients and surgeons with the information and support they need, including the global program providing support for recall-related care, which has thus far resulted in thousands of payments to patients, ” said the company.

Under the terms of the accord, only plaintiffs who had an ASR hip implanted in the U.S. and had it removed by August 31, 2013, are eligible for this settlement, Sharko told Bloomberg. The patients must have had the implant for at least 180 days before having it removed, she said.

Payment Structure

The program is structured in two parts, she said. Under one part, patients will receive a base award of $250, 000, subject to reductions. Under the other part, the award will go higher for patients who can demonstrate “extraordinary injuries” related to their hip implant or removal, Sharko said.

The company was facing about 12, 000 suits filed in federal courts and state courts in California, Illinois and New Jersey. The settlement covers the more than 7, 500 patients who had surgery to have DePuy hips removed. The remaining claims were filed by patients who haven’t yet had revision surgeries. According to the company, funds had already been set aside to cover the settlement and are not expected to affect future earnings.