Rottenstein Law Group Evaluating Johnson & Johnson’s Aggressive Acquisitions Despite Troubles with ASR, Pinnacle Hip Replacement Systems

(New York, NY, May 9, 2011) The Rottenstein Law Group, which represents clients with claims stemming from the failures of defective hip replacement devices manufactured and sold by DePuy Orthopaedics, a division of Johnson & Johnson, has learned that despite the company’s recent difficulties, it is aggressively seeking to expand its implant business.

Johnson & Johnson reserved $992 million of its 2010 revenue to cover the costs of lawsuits pertaining to the recalled DePuy ASR hip replacements (along with other liabilities and litigation). The recalls set Johnson & Johnson’s sales revenue back 30% in the fourth quarter of 2010, according to statistics released by the company. Despite difficulties in the orthopaedic products category, Johnson & Johnson has been actively pursuing expansion through acquisitions of other companies.

Johnson & Johnson recently made a bid to acquire British company Smith & Nephew, another hip and knee replacement device supplier. The deal did not go through, but Johnson & Johnson did successfully take over Swiss company Synthes, at a reported cost of $21.3 billion. 2010 sales of high-tech precision screws, plates, saws and drills used for orthopaedic surgery earned Synthes a reported $3.7 billion. The company controls approximately half of the $5 billion trauma market and about one-fifth of the total orthopaedics market, according to reports. The Synthes takeover seemingly gives Johnson & Johnson dominance in the orthopaedics market, ensuring that the company gains significant negotiating power when dealing with its customers, particularly hospitals.

In August, 2010, the U.S. Food and Drug Administration (FDA) requested a recall of DePuy’s ASR hip replacement systems, due to an unacceptably high rate of failure. The devices were failing an estimated 12% within five years of initial implantation. The FDA based its approval of the ASR devices on their similarity to the Pinnacle systems, which were already for sale, and in widespread use. Currently, the FDA is receiving complaints about the older Pinnacle systems; to date, there have been more than 1,300 reports citing that the device loosens and causes severe pain when the recipient engages in simple movements and normal, everyday activities. Another serious side effect of the Pinnacle systems was reported by the New York Times in December, claiming that metal can flake off the device and embed itself into the surrounding tissue, putting the recipient at risk of developing metal poisoning. At least one plaintiff has already filed a lawsuit claiming this very issue with his Pinnacle hip replacement system.

The Rottenstein Law Group is advising anyone with a friend or relative who has undergone a hip replacement procedure to reach out to that person and recommend that he or she consult a physician immediately and then speak to a qualified personal injury lawyer. The Rottenstein Law Group lawyers have a total of more than 25 years of experience fighting for the rights of clients who have suffered harm due to the negligence of powerful corporations. Affected individuals can also stay apprised of the latest developments in the DePuy Pinnacle situation by visiting the DePuy Pinnacle Lawsuit Information Center. The site is equipped with easy-to-use social media features which will enable users to spread the word about DePuy Pinnacle hip replacement device failures.

About the Rottenstein Law Group
The Rottenstein Law Group is a New York-based law firm that represents clients in mass tort actions. The firm was founded by Rochelle Rottenstein, a lawyer with over two decades of experience in compassionate representation of clients in consumer product injury, mass tort, and class action law suits. For more information, please visit their Web site, or call (888) 9-ROT-LAW.

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