DePuy ASR Hip Recall Update: Johnson & Johnson Reports Weak Earnings Guidance for 2013 as New Information Continues to Unfold in Court
After a sequence of hard-hitting events—which included the unveiling of court documents that revealed the company may have known about side effects associated with the DePuy ASR hip recall before and after it was issued— Johnson & Johnson may be right to issue weaker income projections for the upcoming year.
New DePuy Hip Recall Information Unfolds
According to BusinessInsider.com, the company is expecting its price per share to range between $5.35 and 5.45 in 2013. That is less than analysts’ estimates of $5.49, the Jan. 22 article stated.
Earnings for Johnson & Johnson’s fourth quarter of 2012 were also a bit less than the company may have expected, with its net income only reaching $17.56 billion instead of the expected $17.65 billion. Fourth-quarter 2012 net earnings included after-tax special items of $0.8 billion, primarily related to an increase in the litigation accrual and program costs associated with the DePuy ASR hip recall.
This news comes at the height of controversy over Johnson & Johnson’s possible knowledge of early failure rates associated with the DePuy ASR hip recall, which was announced in August 2010 after concerns began to rise about early failure rates and other possible side effects stemming from the metal-on-metal hip replacement.
First DePuy ASR Hip Lawsuit Slated to Begin in California State Court
In January, depositions for DePuy officials and company documents related to the recalled ASR metal-on-metal hip replacement were unveiled in California Superior Court in Los Angeles County, where the first DePuy ASR hip lawsuit is scheduled to begin on Friday, Jan. 25.
According to one such deposition, Johnson & Johnson reportedly received data in 2008—two years before the DePuy ASR hip recall—showing “extreme” levels of metal ions in patients who were implanted with the device, as opposed to a product from a rival company.
To that, a DePuy official told colleagues, “I believe it means that we need to start any ASR upgrade sooner than our previous plans had suggested,” The Wall Street Journal reported.
And there’s more. Another court document showed the details of an internal analysis conducted by Johnson & Johnson in 2011, in which it was indicated that approximately 40% of DePuy ASR hip replacement recipients would suffer early hip failure within five years. These findings were previously kept private by the company.
Considering a DePuy ASR Hip Recall Lawsuit? Call Us Today.
If you were affected by the DePuy ASR hip recall, you may be eligible to file a DePuy ASR hip lawsuit. Contact an attorney at Bernstein Liebhard LLP at (877) 779-1414 for more information.