Johnson & Johnson agreed to pay more than $400 million to settle allegations the company sold defective artificial hips, a source familiar with the negotiations reported to Bloomberg.
Here are five things to know:
1. Currently, the device company is in the processes of settling 3,300 of the 10,000 lawsuits against its Pinnacle hip replacement products.
2. Johnson & Johnson settled on paying $125,000 per case to resolve one-third of the cases. At $125,000 per 3,300 cases, the company could spend $413 million.
3. A source familiar with the case said Johnson & Johnson is looking to resolve the remaining Pinnacle cases. Trials are expected to begin in January 2019.
4. These are the first settlements of a seven-year legal battle. Patients are arguing on top of the defective hip implants Johnson & Johnson also hid health risks of the devices.
5. Johnson & Johnson denied the claims and said it developed and marketed the hip implants responsibly. Over the past two years, the company has been ordered to pay $1.7 billion in damages.