How Much Will It Cost Johnson & Johnson To Settle Most of Its Lawsuits?

Johnson & Johnson (NYSE:JNJ) has been facing several lawsuits over its different products, including talc, hip-plants, and the blood thinner, Xarelto. There are a total of around 50,000 such cases against the company. The company has agreed to settle several of these cases, as announced over the last few months. However, if it were to settle all of the above 50,000 cases, it would cost the company an amount north of $6 billion, in our view. Johnson & Johnson is capable of settling all the claims if need be from its cash in hand of $14 billion. You can view our interactive dashboard analysis ~ How Much Money Could Johnson & Johnson Have To Shell Out To Settle Its Lawsuits? ~ for more details.  In addition, you can see more of our data for Healthcare companies here.

Johnson & Johnson Is Facing Around 50,000 Lawsuits

• Johnson & Johnson Faces Around 50,000 Lawsuits Related To Talc, Hip-Plant, Artificial Hips, And Blood Thinner Xarelto.
• However, The Company Has Decided To Settle Several of These Lawsuits, Including Those For Xarelto And Hip-Plants.
• Total lawsuits:
  • Talc: 14,000
  • Hip-Plant: 6,000
  • Artificial Hip: 4,500
  • Blood Thinner: 25,000

These Lawsuits Could Cost Johnson & Johnson Over $6 Billion

• Talc:
  • Total cost to settle talc related lawsuits could be around $4.0 billion.
  • The $4 billion estimated figure is a product of number of talc related lawsuits, and average settlement cost per lawsuit.
  • There are close to 14,000 talc related lawsuits filed against the company.
  • The settlement could cost the company an average of $280,000 per case.
• Hip-Plant:
  • Total cost to settle hip-plant related lawsuits could be over $1.0 billion.
  • The $1 billion estimated figure is a product of number of hip-plant related lawsuits, and average settlement cost per lawsuit.
  • There are close to 6,000 hip-plant related lawsuits filed against the company.
  • The company has agreed to pay $1 billion to settle 95% of the lawsuits.
  • The settlement cost would translate into an average of $180,000 per case.
• Artificial Hip:
  • Total cost to settle artificial hips related lawsuits could be over $800 million.
  • The $800 million estimated figure is a product of number of artificial hip related lawsuits, and average settlement cost per lawsuit.
  • There are close to 4,500 artificial related lawsuits filed against the company.
  • We use the same average settlement cost as is in the case of hip-related lawsuits, i.e. an average of $180,000 per case.
• Blood Thinner Xarelto:
  • Total cost to settle Xarelto related lawsuits is $775 million.
  • The $775 million figure is a product of number of Xarelto related lawsuits, and average settlement cost per lawsuit.
  • There are close to 25,000 Xarelto related lawsuits filed against the company.
  • The company, along with Bayer, has agreed to pay $775 billion to settle all of the lawsuits. This will be equally borne by J&J and Bayer.
  • The settlement cost would translate into an average of $31,000 per case.

Johnson & Johnson Is Capable of Settling All The Lawsuits From Its Cash

• While the total possible cost for settlement of all the above 50,000 lawsuits is around $6.2 billion, the company’s cash in hand as of June 30, 2019 is $14.4 billion.

What’s behind Trefis? See How it’s Powering New Collaboration and What-Ifs

For CFOs and Finance Teams | Product, R&D, and Marketing Teams

All Trefis Data

Like our charts? Explore example interactive dashboards and create your own.