Boston, MA 03/01/2013 (wallstreetpr) – Johnson & Johnson (NYSE:JNJ) has been put in a tight spot over its metal-on-metal hip. The company had to globally recall 93,000 hips after they were found to be defective. J&J now has 10,750 lawsuits filed against it and is currently fighting the first trial in Los Angeles. Sixty-five year old Loren Kransky claimed that the ASR hip unit had a defective design and that the J&J DePuy unit had failed to warn users and doctors of potentials risks of the implant. Brian Panish, his attorney has filed for compensatory damages to the tune of $5.3 million and $179 worth of punitive damages.
All hips recalled
The ASR hips manufactured by Johnson & Johnson (NYSE:JNJ), the world’s largest healthcare products manufacturer recalled all pieces in 2011 but not before 12 percent of the implants failed in under five years, all of which necessitated follow-up surgeries to revise the complications. In 2012, the failure rate of the hip hit 44 percent in Australia said Panish. He went on to argue that the design had been faulty at the outset and that Johnson & Johnson (NYSE:JNJ) had been aware of the potential harm that they could cause and had gone ahead with the launch anyways.
Accusations and allegations
The New Brunswick, New Jersey-based company denied these allegations and said that Kransky had to go in for revised surgery because of a hip infection and not because the J&J hip had been defective. The charges are that J&J acted maliciously, prioritized its profits and put the safety of the patients on the back burner. Apart from other arguments, Johnson & Johnson (NYSE:JNJ) said that Kransky’s hip had been implanted incorrectly which had caused additional wear and tear which was one of the factors which lead to the failure of the implant. Irrespective of whether Kransky wins this lawsuit or not, just facing and resolving these lawsuits is going to cost Johnson & Johnson (NYSE:JNJ) billions of dollars.
Shares of Johnson & Johnson (NYSE:JNJ) went down by 0.28% to close at $76.11