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Artificial hip maker settling for $4M in Oregon

By Bryan Cohen | Jul 3, 2014

SALEM, Ore. (Legal Newsline) - Oregon Attorney General Ellen Rosenblum announced a $4 million settlement on Wednesday with an artificial hip manufacturer to resolve allegations it failed to disclose that one of its devices had a significant failure rate.

DePuy Orthopaedics Inc., a wholly-owned subsidiary of Johnson & Johnson, allegedly failed to tell physicians and patients that its ASR XL "metal on metal" artificial hip devices had a high failure rate. DePuy sold 432 of the devices in Oregon between 2005 and 2010.

"Oregonians in need of a hip replacement deserve to know that the artificial hip they are contemplating in fact has the qualities, and benefits, that a company advertises," Rosenblum said. "Doctors also need to know that the products they suggest to their patients meet certain standards; and no company should be permitted to exploit that basic tenet. I am proud that Oregon has once again taken the lead on deceptive marketing practices that hurt patients."

Rosenblum alleged DePuy violated the Unfair Trade Practices Act when it made false and unsubstantiated claims about the ASR XL artificial hip device or made claims that were contradicted by other data. DePuy conducted a nationwide recall of the hip device in 2010.

Under the terms of an assurance of voluntary compliance, DePuy must pay $4 million to the state and is prohibited from making false, misleading or deceptive statements when marketing or promoting its hip replacement products.

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